The incident took place yesterday when the villagers were crossing the river in the boat from Sri Lanka Tappu to Prakashpur.
According to DIG Keshari Raj Ghimire, there were around 60 people, including women and children, on board the boat, the Kathmandu Post reported.
Chief District Officer Mohan Bahadur Chapagain said six boats and a steamer were mobilised to search and rescue the victims.
Rescue efforts, however, were greatly affected as it was raining heavily in the area since yesterday.
Water flow in the river rose after 28 floodgates of the Koshi Barrage had been opened.
According to security officers, carrying passengers beyond capacity without using life-jackets is the main cause of boat capsize in the area.
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