The police were searching for the hotelier after drugs were found inside a package dispatched by him from Kathmandu to the Netherlands during a security check at Germany's Frankfurt Airport, the police said.
Mr Lari is the owner of Kathmandu's five-star Everest Hotel which was closed the building developed major cracks in the 2015 earthquakes.
The police have filed a case for trafficking drugs against Mr Lari in the Kathmandu District Court after taking him into custody.
Follow NDTV for latest election news and live coverage of assembly elections 2019 in Maharashtra and Haryana.
Subscribe to our YouTube channel, like us on Facebook or follow us on Twitter and Instagram for latest news and live news updates.