KATHMANDU: Police have arrested a man in Sarlahi after recovering Rs500,000 in cash for which he could not provide a satisfactory source, with investigators suspecting the money may be linked to an illegal hawala (informal money transfer) operation.

The suspect has been identified as 36-year-old Bikau Mahato of Malangawa Municipality-4, Sarlahi, according to Police Inspector Ganesh Pandey of the District Police Office, Sarlahi.

Mahato was arrested while traveling from Sonbarsa, India, toward Malangawa on an Indian-registered motorcycle bearing registration number BR 30 H 1969.

Police said preliminary investigations suggest the cash may be connected to hawala transactions. Further investigation is underway.