Nepal, Sept. 2 -- Police on Tuesday seized nearly Rs 40 million in cash and gold ornaments from a house in Gongabu, Kathmandu.

Acting on a tip-off, the Kathmandu District Police Range recovered Rs 35 million in "unsourced" cash and gold worth Rs 5 million from the residence of Binod Kumar Shrestha of Gorkha.

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SP Apil Bohora of the police range said Shrestha had been running a racket of lending money at exorbitant interest rates in exchange for gold.

"Our preliminary investigation shows that the accused was providing loans at very high interest rates by keeping gold as collateral," SP Bohora said.

Police said further investigation into the incident is underway....