The movement started by 6 left groups demanding an all-party government for the mid-term elections entered the third phase. After Prime Minister Girija Prasad Koirala set the date of mid-term elections on 27th October 2051 and recommended the dissolution of Parliament, the political confusion continued.

The king had fixed the date of the election as per the recommendation of the Prime Minister. But UML, the main opposition party of the disbanded House of Representatives, expressed its disagreement with the king's move, and along with the other 6 left components, the movement was raging. 

In the beginning, the left group led by the UML, which was demanding the restoration of the parliament, gave more priority to the demand to remove Koirala and appoint a new prime minister. The left group had been conducting continuous agitation programs to meet the demands of the all-party government. Prime Minister Koirala wanted to hold mid-term elections, while the founding camp of the Congress was in favor of restoring the House of Representatives as much as possible.

The internal strife within the party was increasing and the Congress was on the verge of division. The two camps of the Congress were organizing separate meetings. The petition demanding the restoration of the House of Representatives was being heard in the Supreme Court.

On August 3, 2051, the left group had put forward a plan to encircle the former 75 district headquarters and Singha Darbar in Kathmandu. For almost a month, various stages of similar nature of agitations were taking place . The capital was becoming chaotic in a way. It was having a lot of negative impact on business/business. 

The government also adopted many strategies to make the protest program ineffective. Meanwhile, many protesters were injured during the protest. Government and private properties and physical structures were also damaged by vandalism. 

As part of the program of the third phase of the movement, the government was strongly presented to make the siege that was organized on August 3 fail. After the capital city of Kathmandu came to a standstill, police presence was increased in Singha Durbar and surrounding areas. At 9.30 in the morning, the left-wing leaders gathered in Bhadrakali were arrested.

UML's then President Manmohan Adhikari and General Secretary Madhav Kumar Nepal, who were preparing to go to Singha Durbar Gherao, were arrested from Bhadrakali. After their arrest, the protestors became even more angry. They held processions in different places of the city and in some places the police used force . Places like New Street, Asan, Indrachowk etc. were tense throughout the day. 

The government stopped those who came to Gherau on Putli Road, in front of the Supreme Court and at Bhadrakali . In the morning, UML leader Siddhilal Singh, United Janamorcha general secretary Leelamani Pokharel and other leaders-activists were arrested from the Supreme Court. Leaders sitting on dharna were also arrested. There was vandalism and arson in places. UML claimed that its leader and standing committee member KP Sharma Oli was injured in the police action.

Home Secretary Bhojraj Pokharel informed that the protestors had damaged 26 motorcycles. According to him, two vehicles belonging to the diplomatic missions of the Pakistani Embassy were damaged. Also, the ministry informed that 12 policemen were injured when the protesters pelted stones.

There were clashes between police and protestors in various places of the district including Lamjung. Secretary Pokharel informed that the police fired tear gas at some places in the district including the capital. Home informed that most of the arrested leaders-activists have been released. The protestors protested in the open forum saying that the administration was suppressing them. 

Kantipur Dainik published a news story on August 4, 2051 under the title 'Widespread Arrests to Fail Dharna Program', including reference to the third phase of demonstrations and government arrests during the month-long movement by the UML and the Left Alliance demanding an all-party government.