After Prime Minister Girija Prasad Koirala dissolved the parliament and asked the king to announce the date of the mid-term elections, the internal strife within the ruling Nepali Congress was getting more intense than being resolved.

President Krishna Prasad Bhattarai reconstituted the Central Working Committee for Congress Unity. However, saying that it also benefited the Prime Minister Koirala, MPs and leaders of the party's Chhattisya group organized a meeting at the residence of the party's popular leader Ganeshman Singh on August 2, 2051 and expressed their dissatisfaction. 

At Ganeshman Niwas Chaksibari, they not only expressed dissatisfaction with Koirala, but also openly criticized the Chairman Bhattarai . Dhundiraj Shastri, Chiranjeevi Wagle, Taranath Ranabhat, outgoing central members Bal Bahadur KC and Kuveer Sharma participated in the meeting. Dissatisfied Jaganath Acharya, Lokraj Joshi, Sheshnath Adhikari, Badrinarayan Basnet, Vimalendra Nidhi and others participated in the gathering.

The meeting concluded that the working committee had been reconstituted to protect one side of the party. They said that Krishna Prasad had made a decision to fulfill the wishes of Prime Minister Koirala and had attacked the party's honest, old, loyal and struggling workers. Chhatisse group leaders said that they should keep their point clear, Dhundiraj and Chiranjeevi Wagle said that they will leave the Central Committee if Girija Prasad continues to dominate. Central member Mangaladevi Singh was not present in the gathering. 

Kathmandu Congress president Prakashman Singh was the chief guest of the Chaksibari meeting and the MPs and central leaders present decided not to let Girija Prasad dominate the working committee . Krishna Prasad said that the central committee has been reconstituted for the greater good of the party. Speaking on the events and thoughts program broadcast by

Radio Nepal, Krishna Prasad assured that a joint statement of the three leaders along with Ganeshman, Girija Prasad will be issued for party unity. He told Radio Nepal that tickets should be given based on merit and demerit in the election. The activists of Nepal Vidyarthi Sangh expressed dissatisfaction with the reorganization of the Central Working Committee by Bhattarai.

After growing discontent in the party, on August 2, 2051, two parties were registered with the Election Commission on the same day in the name of BP Congress. The party was registered under the name Nepali Congress (BP). Tulsiram Kafle was the president of that party. Residents of Okhaldhunga, Udaipur, Sindhuli, Solukhumbu and other districts were in his working committee. It was said that the party was formed under the direction of outgoing central member Bal Bahadur KC. But Casey said he had no information.