Of the four proposals presented at the Fifth General Convention of the CPN-UML held in Magh 2049, Madan Bhandari's 'People's Multi-Party Democracy' was overwhelmingly passed through voting. Three proposals, including 'Modified New Democracy' presented by CP Mainali, were rejected.

Since then, the internal conflict that had been raging in the UML had led to the dismissal of Mainali from his ministerial post in 2052. Although on the surface, Mainali appeared to have ignored Prime Minister Manmohan Adhikari's cabinet and violated the rules and procedures, the struggle between the supporters of multi-party democracy and new democracy had increased the conflict in the life of the UML party.

When the country was in the midst of mid-term elections, Prime Minister Adhikari had dismissed Mainali from the post of Minister of Local Development and Supplies. Mainali was accused of repeatedly making public statements against the Prime Minister and the Council of Ministers through the media.

As the Minister of Local Development, Mainali had formed a central monitoring committee to effectively implement the 'Let's Build Our Own Village' program. As the Minister of Supplies, he had also formed a Price and Supply Task Force to bring ease in prices and supply across the country. The task force had started a study on cement and milk supply. But the Prime Minister and members of the Council of Ministers disagreed, saying that the monitoring committee and task force were formed without consultation.

The CP decision was canceled on the grounds that it would increase the country's expenditure. After the Prime Minister canceled the monitoring committee and task force, the mutual dispute further increased.

Mainali expressed his dissatisfaction with the party leadership in an interview with Kantipur on Asad 16, 2052, expressing anger over the cancellation of his decision. Mainali

argued that the limits of authority should be set and that if he did not do so, it would be difficult to work. He indirectly indicated that the party leadership had interfered unnaturally in the decision-making process. After being dismissed from the ministry, Mainali said that he did not take it as a matter of course, and the UML Standing Committee had issued a press release and instructed him not to behave in such a way, saying that he was chaotic and agitated.  Regarding the matter of his removal from the ministry, the Standing Committee had determined that Mainali

had made a serious, objectionable and party unity-breaking statement. The Standing Committee had also instructed the party workers to stand in favor of unity without being misled or provoked by anyone. The CP was reminded not to act irresponsibly while holding a responsible position in the party. Mainali   was a member of the Standing Committee at that time. The statement said, ‘He (CP) did not follow the orders of the Prime Minister and the responsible party body in his capacity as a minister. He formed a monitoring committee without authority without presenting it in the cabinet meeting.’ 

Mainali had said that the monitoring committee had been formed as per the provisions of the directive. In the UML Standing Committee meeting held on Asad 32, 2052, leaders Jhalanath Khanal, Amrit Kumar Bohara, Sahana Pradhan and others had spoken in favor of not removing Mainali . On the same day of the Standing Committee meeting, Home Minister KP Sharma Oli had given a response to the party-related media that he should be punished for making mistakes.

Oli had strongly criticized Mainali , while General Secretary Madhav Kumar Nepal and Deputy General Secretary Bamdev Gautam had not responded. Mainali

had said that Oli was the mastermind of the conspiracy against him in the party. In the Standing Committee meeting, some leaders of the majority party had formed the monitoring committee because Mainali had said that he should not be dismissed from the ministry. They were worried that by removing him from the ministry, it would send a clear message that the majority was biased against the minority party. But CP was dismissed on the basis of the majority. The internal struggle that started with the fifth general convention in 2049 increased and after