Nepali Congress leadership and legal disputes

Former Nepali Prime Minister Sher Bahadur Deuba has returned to Kathmandu following five months of medical treatment in Singapore and Hong Kong. His return occurs amidst a money-laundering investigation involving arrest warrants for him and his wife, Arzu Rana Deuba, as well as an internal leadership crisis within the Nepali Congress party.

Following his return, a dissident faction of the Nepali Congress held a three-day national convention from August 14 to 16. This group rejected the leadership of Gagan Thapa, who was elected president during a January convention that the faction did not recognize. Despite a Supreme Court ruling recognizing the Thapa-led faction as the official leadership, the Deuba-aligned group has filed a review petition, arguing the verdict was “legally flawed.”

The dissident faction has decided to proceed with the party’s 15th General Convention under Deuba’s leadership. This internal crisis has been further complicated by ideological disagreements regarding Nepal’s secular identity. During the Deuba-aligned gathering, some leaders proposed the inclusion of a Vedic Sanatan state in party conclusions. While Deuba identified as a Hindu, he maintained that Nepal should remain a secular state, a position that drew objections from leaders like Bimalendra Nidhi, who argued such provisions conflict with the national constitution.

In an effort to mediate the power struggle, leader Shashank Koirala expressed a willingness to accept Thapa as president if senior leaders are accommodated within the party structure, describing the dispute as essentially a struggle over positions.