India-Nepal Mutual Legal Assistance Agreement

India-Nepal Mutual Legal Assistance Agreement

Why in News? 

Recently, India and Nepal signed a Mutual Legal Assistance Agreement in Criminal Matters to strengthen cooperation in cross-border criminal investigations. It will facilitate coordination in prosecution to combat terrorism and financial fraud more effectively between the two neighbouring countries.

Provisions of India–Nepal Mutual Legal Assistance Treaty (MLAT)

• Establishment of Central Authorities: The treaty designates Central Authorities to facilitate direct communication, bypassing lengthy diplomatic channels. In India, the Ministry of Home Affairs (MHA) serves as the nodal agency, while Nepal has designated its Ministry of Law, Justice and Parliamentary Affairs to route and process all legal requests. 
• Collection and Exchange of Evidence: A primary provision is the formalized exchange of evidence required for investigations and judicial proceedings. This ensures that statements, documents, and physical exhibits collected in one country are legally admissible in the courts of the other, bridging gaps in justice delivery. 
• Assistance in Search and Seizure: The MLAT mandates mutual assistance in executing searches and seizures. Competent authorities can now request their counterparts to identify, locate, and secure assets or materials relevant to criminal cases, effectively targeting the infrastructure of organized crime syndicates. 
• Asset Tracing and Confiscation: The treaty includes robust provisions for tracing proceeds of crime and facilitating their freezing or forfeiture. This is critical for dismantling financial networks involved in money laundering and terrorist financing. 
• Service of Judicial Documents: Specific protocols are established for the service of summons, notices, and other judicial documents. This ensures that individuals in either territory are officially notified of legal proceedings, preventing criminals from exploiting jurisdictional ambiguities to stall trial processes.
• Examination of Witnesses and Experts: The agreement facilitates the examination of witnesses and experts, including the temporary transfer of persons in custody for testimony or investigative assistance. This provision ensures that critical testimony is available to prosecutors regardless of the witness’s location. 
• Combating Specialized Transnational Crimes: By standardizing procedures, the treaty enables rapid collaboration on high-priority cases such as human trafficking, drug smuggling, and cybercrime. It moves the bilateral security relationship from one based on personal rapport to a system of mandatory protocols. 

Need for India–Nepal Mutual Legal Assistance Treaty

• Border Exploitation Data: The Sashastra Seema Bal (SSB) reports a consistent rise in cross-border crimes. An MLAT is vital because the 1950 Treaty of Peace and Friendship allows visa-free movement, which criminals exploit to evade arrest, necessitating a formal evidence-sharing mandate.
• Countering Terrorist Transit: Intelligence data confirms the border is a transit point for groups like Indian Mujahideen. A treaty is required to provide the legal admissibility of evidence found in Nepal to secure convictions in Indian courts for national security cases.
• FATF “Grey List” Compliance: Nepal was re-listed on the FATF grey list in February 2025. The global watchdog requires functional international legal cooperation (MLATs) as a prerequisite for removal, making this treaty an economic necessity for Nepal’s financial credibility.
• Human Trafficking Volume: Official data estimates over 7,000 women and children are trafficked annually across this border. The MLAT is needed to allow cross-border witness testimony, which is currently a major hurdle in prosecuting high-level trafficking syndicates.
• Fake Currency (FICN) Influx: The National Investigation Agency (NIA) has linked Nepal routes to high-quality Fake Indian Currency Notes. A formal treaty is essential to trace the financial trail and seize assets of counterfeiters operating from Nepalese soil.
• Judicial Delay Reduction: Currently, legal requests rely on Letters Rogatory, which take 2-3 years to process. The MLAT is needed to establish Central Authorities to cut this turnaround time, preventing the collapse of trials due to evidence tampering.
• Asset Recovery Necessity: Without a treaty, India has no legal standing to freeze or confiscate assets derived from crimes like money laundering hidden in Nepal. The MLAT provides the framework to hit the financial infrastructure of organized crime.
• 1953 Treaty Obsolescence: The 1953 Extradition Treaty is outdated and lacks modern criminal definitions. The MLAT is needed to handle cybercrimes and fiduciary offenses that did not exist when the original extradition framework was drafted.

Significance of India–Nepal MLAT

• Safeguarding Cross-Border Investments and Economic Engagement: India accounts for over 33% of Nepal’s total Foreign Direct Investment (FDI) stock, making it Nepal’s largest investment partner. The treaty facilitates asset tracing, thereby enhancing economic integrity, investor confidence and commercial dispute resolution within bilateral trade.
• Convergence with Global Anti-Crime Legal Standards: The MLAT aligns India–Nepal cooperation with obligations under United Nations Convention against Transnational Organized Crime (UNTOC) and UN Convention against Corruption (UNCAC) by enabling lawful evidence transfer, prosecution support and legal assistance requests. 
• Strengthening Sub-Regional Institutional Cooperation: Nepal was among the few South Asian neighbours without an operational MLAT with India. The agreement enhances legal interoperability within regional groupings such as BIMSTEC and SAARC, promoting synchronised enforcement frameworks against transnational crime.
• Enhancing India’s Neighbourhood-First Policy Outreach: The treaty complements India’s Neighbourhood First Policy by strengthening trust-based institutional partnerships with Nepal in sensitive areas of law enforcement cooperation. It reflects India’s growing role as a regional legal-security partner, promoting stability through cooperative frameworks.