Acting on a tip-off, the police detained the accused from Tokha Municipality yesterday and recovered the rare species' hides from them, an official statement said.
The suspects were arrested and sent to District Forest Office, Hattisar, Kathmandu for further investigation and action today, the Himalayan Times reported, quoting officials of Nepal's Metropolitan Crime Division.
According to the National Park and Wildlife Conservation Act, 1973, the red panda, also known as Ailurus, is classified as highly endangered species in Nepal.
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