A team of Metropolitan Police Crime Division (MPCD) recovered the gold biscuits from a scooter, the arrested man was driving.
He was identified as Pachheng Khamba.
According to police, the seized gold costs about Rs 60.50 million in the domestic market.
The Nepal Police has launched special operation following surge in smuggling of the precious yellow metal.
Five days ago, one person was arrested for illegally carrying two kg of gold.
Likewise, Central Investigation Bureau (CIB) had confiscated two kg of illegal gold from a grocery shop in Bouddha in the outskirt of the city a couple of days ago.