Captain Rambahadur Limbu, 74 -- who was awarded the exceptionally rare VC for his bravery in action during the Indonesian Confrontation in 1965 -- spoke to an inquiry examining Gurkhas' welfare grievances.
The cross-party panel is considering Gurkhas' appeals for the same pay, pension and facilities as their comrades in the British army.
The war hero said he had never had complaints about his treatment during his 28 years of service in the British army, but after retiring he came to the view that Gurkhas were being treated "like third-class soldiers by the British government".
"When I came to know that our trusted friends have cheated us and stabbed us from the back, I felt very bad. Where is the debt of honour that this country owes to the Gurkhas?"
Wearing his heavy row of medals on his left breast and walking with a stick, Limbu posed for pictures outside the Houses of Parliament.
Other issues being considered include adult dependents, medical care in Nepal, benefits and allowances, and the Gurkha communities in Britain.
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