Kathmandu – Two companies, Kaeros International and Aretee International Pvt. Ltd., have been importing luxury vehicles from global brands into Nepal using forged documents issued by a Hong Kong-based company.

These cars were brought in without any verification from the manufacturers or their authorized distributors.

The Department of Commerce, Supplies and Consumer Protection registered both companies as official agents without confirming the authenticity of their papers. This allowed them to import vehicles illegally.

According to records, every LC related to Kaeros and Arete’s imports was opened through Prime Commercial Bank. The Nepal Rastra Bank provides clear guidelines on documents required for LC approval, but Prime Bank ignored them and processed the requests without double verification.

Kaeros imports vehicles from Porsche, Audi, and Land Rover Range Rover, while Arete brings in Tesla electric cars.

Tesla does not appoint official distributors in countries where it lacks a direct presence. And Jaguar Land Rover (JLR) has already confirmed that it has no authorized dealer in Nepal. Porsche and Audi are also unlikely to have appointed a recently established firm as their representative.

Despite these facts, Prime Commercial Bank continued to open LCs for both companies without verifying the authenticity of the importer, the condition of the cars, or their pricing. This has raised questions about the bank’s role in the operation.

Prime Bank, however, claims it opened LCs based on documents approved by the Department of Commerce and the Department of Transport Management.

Other commercial banks declined to open LCs for the companies, citing suspicious paperwork and the risk of foreign currency violations.

According to banking sources, Kaeros and Arete International created a company in Hong Kong to present themselves as authorised dealers. However, since the vehicle manufacturers had not officially appointed them, there was a risk that these companies could face legal trouble at any time. Therefore, the banks declined to open LCs for them.

'Opening LCs worth hundreds of thousands of dollars requires clear documentation and credible transactions. The papers appeared suspicious and there was a risk of foreign exchange misuse, so we decided not to proceed,' said a bank source.

'We don’t know on what grounds or trust Prime Bank continued to open LCs for them.'

A banker said that while Prime Bank continues to handle suspicious transactions and LCs for Kaeros and Aret, the role of Nepal Rastra Bank also appears questionable.

Kaeros was registered about two years ago. It first imported Audi cars using fake authorization documents. Later, it imported Porsche and Land Rover models through a Hong Kong-registered company, with all LCs opened by Prime Bank.

Industry experts say it is nearly impossible for a single company in a small market like Nepal to be an official dealer for three major luxury car brands. The situation points to negligence at the Department of Commerce, which issued agency certificates without checking with the manufacturers.

Luxury automakers typically follow a long process before appointing official dealers, requiring investment in service centers, spare parts, and after-sales support.

Kaeros bypassed this by purchasing vehicles from an unrecognized Hong Kong firm and using forged documents to obtain import permissions.

The commerce department’s oversight is further exposed by its decision to issue a single company registration for three luxury car brands simultaneously. Genuine importers, by contrast, face lengthy procedures and document checks for each vehicle model.

Kaeros has been importing Audi electric cars since 2023 using fake authorization.

It later brought in Porsche vehicles and Land Rover Range Rover Sport models through a Hong Kong-based firm called South China Exim Ltd., which was registered under businessman Rakesh Adukiya. He has no company registered under his name in Nepal but has a history of controversial dealings.

Adukiya previously operated Srima Distribution Pvt. Ltd., which illegally imported Tesla cars. After that firm collapsed, he created Arete International and continued Tesla imports under false authorization.

Both companies reportedly have influence inside customs offices as well. Vehicles imported by them are cleared directly at Birgunj Dry Port Customs without standard inspection.

A customs officer said, 'Their goods are passed immediately, while others face detailed checks.'

Jaguar Land Rover confirmed via email to Biznessnews that it has no official dealer in Nepal. The company’s Asia-Pacific office in Singapore stated, 'Jaguar Land Rover Limited confirms it has no authorized dealer in Nepal. Any business claiming to represent JLR is unauthorized.'

Despite this, Nepal’s commerce and customs authorities have not investigated the matter. Experts warn that such unchecked imports increase the risk of under-invoicing and foreign currency misuse.

Jaguar Land Rover clarified that its last authorized dealership in Nepal expired in August 2016 and was never renewed. Taking advantage of this gap, Kaeros International created a shell company in Hong Kong and began importing vehicles into Nepal using forged authorization papers and agency certificates.