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CPN-UML cadres clashed with police in New Baneshwor on Sunday.

The demonstrations, which began in the morning, demanded the release of UML Chairman KP Sharma Oli and Nepali Congress leader Ramesh Lekhak.

The arrests follow recommendation made by 

the Gauri Bahadur Karki-led commission formed to investigate the Gen Z protests held on September 8 and 9. The commission recommended action against the then Prime Minister Oli and former Home Minister Lekhak. 

Oli and Lekhak were arrested on the same recommendation. 

Currently, Oli has been admitted to the Maharajgunj-based Tribhuvan University Teaching Hospital due to health problems, while Lekhak has been kept at the Maharajgunj Police Station.

Former Prime Minister and Chairperson of the CPN-UML Chairman KP Sharma Oli, who was admitted to Tribhuvan University Teaching Hospital (TUTH) on Saturday with complaints of palpitations, is currently under observation of doctors.

Issuing a press release, the TUTH said, "Chair Oli is under observation and monitoring, and our medical team is managing his treatment." The TUTH also wished leader Oli speedy recovery.

The investigation into the assets of three former Prime Ministers–Sher Bahadur Deuba, KP Sharma Oli and Pushpa Kamal Dahal–has moved forward. 

The probe gained momentum after the Department of Money Laundering Investigation directed the Central Investigation Bureau (CIB) to move ahead with it. 

According to the CIB’s correspondence,Congress leader and former Energy Minister Deepak Khadka was arrested on Sunday to investigate the case.

The swearing-in of Balendra Shah as Prime Minister marks a dramatic shift in Nepal’s political landscape, followed swiftly by bold actions from his administration. Within a day of assuming office, his government ordered the arrest of former Prime Minister KP Sharma Oli and former Home Minister Ramesh Lekhak, holding them accountable for the deaths of 19 youths during the September 8–9 protests, based on findings from an investigative panel.

These arrests triggered widespread backlash. The Communist Party of Nepal (Unified Marxist–Leninist) launched nationwide protests, while the Nepali Congress also raised objections, citing concerns over the lack of due process. Legal experts have similarly argued that proper legal procedures were not followed in the arrests of Oli and Lekhak.

At the same time, the government intensified its anti-corruption drive by initiating money laundering investigations against top political figures. This included the arrest of Dipak Khadka after a large amount of allegedly illegal cash was discovered at his residence during the Gen Z protests. According to local media reports, the Balen administration has also begun investigating the assets of former prime ministers, including Sher Bahadur Deuba.

Alongside these crackdowns, the Shah-led cabinet unveiled an ambitious “100 tasks in 100 days” reform agenda aimed at restructuring the bureaucracy and depoliticizing state institutions. The government has also pledged to establish a new commission to fully investigate the September 9 protests, addressing gaps left by earlier inquiries, and announced plans to form a powerful body to scrutinize the assets of public officials dating back to 1990. Other initiatives are focused on improving public service delivery.

Meanwhile, a rift has escalated within the Nepali Congress. A special general convention held in January reportedly removed Sher Bahadur Deuba from party leadership and elected Gagan Kumar Thapa as the new party head. In response, the Deuba faction filed a case challenging the legitimacy of the convention. Both factions have since been conducting parallel political activities, deepening the party’s internal crisis.