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But many continue to sell their kidneys to satisfy demand from rich clients, including Westerners, waiting for transplants.
In January, police raided an illegal clinic in Gurgaon after being tipped-off by a victim. Four people were arrested.
The donors were allegedly paid up to $2,500 (£1250).
Authorities in Nepal displayed bundles of foreign and Indian currency that they said were worth more than $200,000 and had been seized from Mr Kumar on his arrest.