Surendra Saha of Motihari district of Bihar state, was arrested from Baglung municipality on Saturday, the Himalayan Times reported.
Saha was detained with varieties of silver jewelleries worth Rs 320,000 approximately, Deputy Superintendent of Police Bishwa Rajsingh Thapa said.
Saha had been involved in transporting contraband jewelleries belonging to Raksaul-based Indian trader and selling out to traders in Baglung, Sub Inspector Damodar Bhattarai said.
The examination of confiscated jewelleries revealed that each of the items contained only 50 per cent pure silver, the police official said.