i had about 7 hours layover. They did take the passport and returned it after 3 hours. I did not need to recheck in the luggage. I think when they take your passport they need your baggage claim tags to transfer your luggage.

Thanks Patan.

It baffles me why they have to disappear for hours with the passports.  Does this happen to only Nepalis?  I can't imagine surrendering my passport in a foreign land, even for minutes.  Scary.

 I have mixed reactions regarding JetAirways via Dehli while travelling USA-KTM. 2 years ago there was no problem. In last 7 months, my relatives and employees travelled separately in 5 different times. 2 had no issues and others were given lot of trouble.

Agents taking away passports for hours is normal. Sometimes you are asked to collect your luggage, stay outside for whole night and then check back in before the flight to KTM.

Even checked baggages with US based airlines were told to be over weight and charged extra as DEL-KTM doesn't get same luggage allowance.

All my attempts to contact JetAirways customer service and get refund for those has gone in vain.

I have been through Delhi few time via jet airways never had to pay extra for luggage.

newtrader:  Were your relatives changing airlines at Delhi?  Could that be the reason why they were asked to collect and re-check in the luggage?

Yo passport liyera gaayab huney kuro chai risky lagyo malai pani.

yuvaraj: could it be that you were not asked to pay extra for luggage because you were flying Jet Airways all the way from Nepal to USA?

No I have always changed in Delhi. I actually get my luggage out and check in again. I have never had any problems with that either but I know some had with Indian customs etc
I have found jet airways people both at Delhi airport and ktm to be quite nice.
The thing that bothered me the most with coming thru India is that extra security that the airlines going to India require. Even after going through the security at the airport terminal etc while boarding plane to Delhi in ktm you have go through security check again right before getting into the plane and sometimes that means waiting in the field for half an hour or so right before boarding. During summer can be uncomfortably hot.

 so this is what happened to me like 2 years ago.
i reached Delhi around 1 am and my flight to Kathmandu wasn't until 10 am. I was warned by my friends to take special notice of my luggage. I asked the Jet Airways counter if my luggage will be transferred to the connecting flight to kathmandu. They said they weren't sure. So i went to the baggage claim area and told the officials that i have a 9 hrs transit and need to check if my baggage is all safe and if it will be transferred to the flight or was i to claim it here.. He started saying things in hindi to his colleauge ( nothing offensive or anthing) and he thought i was some white boy. When I looked downstairs, I could clearly see my baggage in the claim area. I was really disappointed and mad at the same time.  
So i told him I need to get my bag, but he urged that i needed a visa to enter India. I told him i do not need a visa since i'm a Nepalese citizen and he let me go. I did not have to submit anything,, he just had a stamp in my passport that was all. I found my luggage was broken, i was worried that things could have gone missing but it was ok.  So i went to the jet airways check in center for my ticket, i actually did not have the ticket conformation or anything with me. Those guys were very polite to me and helped me out. Next i realized was i had a good 7 and a half hour to kill so i thought of going outside with a bulky broken luggage, a hand cary and a back pack. Just as i took the airport exit i felt like i was blown air at with the hair dryer and there were people everywhere. Never in my life had i seen such crowd, so i decided to come back to the check in center i couldn't check in until 2 hours before the flight. That was the longest night of my life.
When i checked in i had to go through all the security processes which was very obvious but they stopped me right before when i was about to board my flght for missing the flight tag on my hand carry which was utter bullshit. They went through all my handcarry and stuff and made a mess of it. I was pissed but as i enetered the plane i realized Jet Airways had the best service through out the entire journey. I wouldn't mind travelling via Jet Airways if there weren't such airport bullshit but still try to avoid india.

Interesting stories..

I had Delhi airport transit last month, and it was JetAirways as well.

Here's what I've known about that airport, and it's been pretty much the same for the last 4ish years that I've travelled through Delhi:

-If your luggage is checked in all the way through, and you have your boarding passes for every leg (they issued mine at JFK and KTM for all three flights), then all you need is a signature/initial or whatever acknowledgement they want to stamp on your boarding pass, right by the transit area entry (registration/reception desk). You should then be allowed to enter through Security check and head upstairs toward dutry-free area. Luggage tag on every bag (doesn't need to have anything written on it) is a requirement there.

-If your luggage is checked (or not checked) in all the way through, and you don't have every segment's boarding pass, then they make you hand over your passport, and elope. I've always asked them for a reason for collecting those docs (and have gotten random, illogic responses), and an approximation of the wait time (again, random answers), but they did get back, couple hours prior to the boarding time.

-Almost every time, at least one of my luggages' zipper has been broken when they get touched by Dilliwallahs. (Not the case when they've skipped that airport). Stuffs remain there, but the lock ends up hanging on the side. 

-I try not to smile and/or be polite while interacting with the airport employees there. Don't mean to advicate on rudeness (afterall they're 'TSA authorities' there), but you usually need to get loud and clear to make things happen.

-Service was okay overall .. but the food was a total disappointment. I'd read good reviews about the food -- but that wasn't the case. Regardless, it's always a good idea to have some snacks in your bag and have less expectations on what they offer.

@nepali-american, I hope this (and other posters' comments) help you plan your trip accordingly!

Cheers,
~@~

Thanks guys, for your inputs.

For me Jet Airways is the cheapest and the shortest flight time option, but having read your posts, I wonder if it is worth the scare (having the passport taken away) and the potential hassle (at the airport).  I appreciate it, nonetheless, gave me something to think about.

Why not take QATAR AIRWAYS Nepali_American?

The flight through India SUCKS. They lay over is insane.

The last time I flew through India when I was a kid, they opened our luggage and stole one shoe.... random.

I find that QATAR is fast and gives you more time to spend in Nepal, rather than in transit.

On a different note, please don't make the 'stupid' mistake of leaving your laptop, portable electronic devices and other valuable stuffs on your checked luggages. It's not just India but also, Kathmandu's airport where such incidences take place. 

Thank you Nepali Gal and Riddle.

Once I had taken couple of 5 lb. bags of chocolates.  Both disappeared when I reached Kathmandu.  Go figure. 

Qatar Airways tix is little hard to come by and rather on the expensive side.  But thanks for the suggestion thoug.

Thought I'd post my findings, in case anybody here might find it handy.

When: October 2012 (roundtrip - returning on March/April 2013)
From: Kathmandu
To: New York
Travel Agent: Yeti Travels

Jet Airways: Rs.126,000
Qatar/Gulf/Etihad: around Rs. 150,000