Security experts have long warned that the absence of such a treaty allowed criminals to use one country as a “safe haven” while committing offenses in the other.
In a landmark development for bilateral judicial cooperation, Nepal and India have formally signed a long-awaited Agreement on Mutual Legal Assistance (MLA) in Criminal Matters. The pact, signed on Wednesday in Kathmandu, marks the culmination of years of diplomatic negotiations and sets a new framework for combating transnational crime, terrorism, and financial fraud between the two neighbouring nations.
The agreement was signed by Binod Kumar Bhattarai, Joint Secretary at Nepal’s Ministry of Law, Justice and Parliamentary Affairs, and Naveen Srivastava, the Indian Ambassador to Nepal, during a ceremony held at the Ministry in Singha Durbar. The event was witnessed by Nepal’s Minister for Law, Justice and Parliamentary Affairs, Anil Kumar Sinha, along with Ministry Secretary Parashwar Dhungana and senior officials from the foreign ministries of both countries.
A Milestone in Judicial Cooperation
For decades, law enforcement agencies in Nepal and India have relied on informal understandings and ad-hoc arrangements to handle cross-border criminal cases. This lack of a formal mechanism often created legal hurdles, delaying investigations and hampering the delivery of justice. The new MLA treaty effectively bridges this gap, providing a binding legal structure for cooperation.
Speaking after the signing, Ministry Spokesperson Dal Bahadur Adhikari described the agreement as a “milestone” in the administration of justice. “This agreement will formally pave the way for the exchange of cooperation between competent authorities of both countries regarding matters such as the collection and exchange of evidence during the investigation, prosecution, and judicial proceedings of criminal cases,” Adhikari stated.
The treaty mandates that both nations provide mutual assistance in serving judicial documents, executing searches and seizures, obtaining evidence, and tracing proceeds of crime. Officials believe this institutional coordination will significantly strengthen the rule of law in the region, ensuring that criminals can no longer exploit the open border and jurisdictional ambiguities to evade prosecution.
Tackling Transnational Crime
The open border between Nepal and India, while vital for people-to-people connectivity, has historically been vulnerable to misuse by criminals, say law enforcement agencies. The new agreement specifically targets the rising tide of transnational organised crime. By standardising procedures, the treaty enables faster and more efficient collaboration on cases involving human trafficking, drug smuggling, cybercrime, and terrorism-related offenses.
One of the most critical aspects of the deal is its focus on financial crimes. With Nepal actively working to exit the Financial Action Task Force (FATF) “grey list,” this treaty signals a robust commitment to international anti-money laundering (AML) and combating the financing of terrorism (CFT) standards. “The agreement is expected to further assist in the mutual evaluation concerning the prevention of money laundering,” spokesperson Adhikari noted, highlighting that the pact will help dismantle the financial networks that sustain organized crime.
Security experts have long warned that the absence of such a treaty allowed criminals to use one country as a “safe haven” while committing offenses in the other. The MLA treaty dismantles this possibility by ensuring that evidence gathered in one jurisdiction is legally admissible and accessible to prosecutors in the other, thereby tightening the net around fugitives and syndicates operating across the border.
From Ad-hoc to Institutionalised
The journey to this signature has been long and complex. While the need for an MLA treaty was recognized years ago, negotiations gained significant momentum during the home secretary-level talks held in New Delhi in July 2025. The text of the agreement was finalised, resolving outstanding differences, during those meetings.
Following the breakthrough in New Delhi, the Government of Nepal’s Council of Ministers formally approved the decision to proceed with the agreement on October 16, 2025. The Indian side subsequently completed its internal procedures, conveying its readiness through diplomatic notes.
Prior to this agreement, cooperation was largely discretionary, often dependent on personal rapport between officers or high-level political intervention. The new framework replaces this unpredictability with mandatory protocols. It establishes “Central Authorities” in both nations – typically the Ministry of Home Affairs – to route and process requests, ensuring that legal assistance is depoliticised and handled through established bureaucratic channels. This shift is expected to drastically reduce the turnaround time for sensitive investigations.
The Extradition Treaty Context
While the signing of the MLA treaty is a major success, it is distinct from the issue of extradition. Nepal and India are still operating under a 1953 Extradition Treaty, which both sides acknowledge is outdated and ill-suited for modern geopolitical realities. Negotiations for a new extradition treaty have been ongoing parallel to the MLA talks but have faced hurdles regarding specific clauses, including the extradition of third-country nationals, officials at Nepal’s law ministry say.
However, officials are optimistic that the successful conclusion of the MLA deal will provide the necessary momentum to finalise the new extradition treaty. The MLA agreement allows for the sharing of evidence and information that can support extradition requests under the existing framework, making the current process more effective even as the new extradition text is being debated.
As the agreement moves towards implementation, both governments are expected to issue detailed operational guidelines to their respective law enforcement agencies.
Image: Law Ministry, Nepal
