Incessant rain since this morning inundated around 40 houses in Itahari Sub-Metropolitan City.
Locals have been left panic stricken after the flooded Tyangra River and Kheti River gushed into the settlements.
The main bazaar area has been inundated due to torrential rainfall.
A dozen settlements in ward 4, 5, 9, 10 and 12 of Itahari have been deluged.
The flooded Tyangra River also obstructed the Highway.
DSP Khagendra Khadka of the Area Police Office, Itahari said that 40 houses have been damaged owing to the floods.
Chief District Officer Indra Dev Yadav said that Nepal Army, Armed Police Force and Nepal Police personnel have been deployed to divert the river.