Speaking during a special session of the House of Representatives on 10th Shrawan 2052, UML MP Krishna Gopal Shrestha had said that the then Finance Minister Dr. Ram Sharan Mahat had an account in a foreign bank. He had demanded an investigation by showing documents proving that 46,768 US dollars (about 2.7 million Nepali rupees) had been deposited in Mahat's account at the Worldwide Consumer Bank in New York, USA.

MP Shrestha had demanded Mahat's resignation, saying he had illegally deposited money in a foreign bank. He had submitted the documents showing the money to Speaker Ramchandra Poudel.

After voices were raised against him in the House, Minister Mahat admitted in the meeting on the 11th that he had an account in a US bank. He had said, 'Before becoming a minister, I opened the account in 1988 when I was working for the United Nations Development Program (UNDP).' He gave this information after the main opposition UML blocked the House, saying that Mahat should resign on moral grounds.

After the opposition party demanded his resignation, an all-party meeting was held to try to find a solution. But the UML insisted that he should resign. Speaker Poudel allowed Mahat to speak in the Parliament meeting.

Mahat had argued that the money deposited in the account did not fall within the ambit of Nepali law because he had earned it abroad. He had said, ‘The money he earned while working for UNDP and then in Pakistan was deposited in that account.’ He had claimed that it took time to bring the money to Nepal, which he had not received through illegal work but through regular work. Mahat had said, ‘I have already received approval from the National Bank to regularize the money and bring it to Nepal.’

The main opposition party, UML, could not agree with Mahat’s statement. In the parliament meeting, the main opposition party’s chief whip, Devi Prasad Ojha, had demanded that Minister Mahat resign immediately. He had said that it was not a question of where and how much money was in the illegally opened account and that the vice-chairman of the Planning Commission and the person who became a financial fraudster had done a fraudulent job.

He had said that he had not informed the state for 8 years after opening an account in a foreign bank. Ojha had accused the Finance Minister of forgery and forgery. Ojha had also said that since the Revenue Investigation Department and the Nepal Rastra Bank are under the Finance Minister to take action against forgery and counterfeiting, he should resign. UML MPs Bhim Bahadur Rawal, Raghuji Pant, KP Sharma Oli, Birodh Khatiwada, Rajendra Pandey, Jagruti Prasad Bhetwal and NEMKIPA MP Narayan Man Bijukchhe had said that there was no option but to resign, saying that the Finance Minister had lied to the country.

UML MPs had tried to link Mahat's involvement in the letter of credit (LC) scam. The UML had been accused of having many LC scams during the nine-month government. Finance Minister Mahat had been claiming that there was political involvement in the scandal. His statement was symbolically targeted at UML. Therefore, UML MP Rawal had interpreted Mahat's statement as being similar to raising the issue of political involvement and the appearance of an account in the US.

The leader of the main opposition party UML, Manmohan Adhikari, had also demanded an all-party meeting, saying that the Finance Minister had made an unusual mistake. After Speaker Poudel called an all-party meeting for the second day, no solution could be found.

Legal experts had argued that the amount and the account cannot be called illegal. On Asad 20, 2053, Mahat had applied to the National Bank to bring the amount of the account opened in New York to Nepal and it was approved on 31. Legal experts had argued that although the act provides for the facility to open an account there for the money earned abroad, there is no provision that it must be transferred after returning to Nepal. Mahat had said that when he submitted his asset details after becoming a minister, he had also mentioned the issue of the bank account and the amount. But the asset details were not made public.

Rastra Bank Governor Satyendra Pyara Shrestha had said that the amount earned legally and deposited in the bank cannot be called illegal. But the regular proceedings of the House were halted by continuous noise and sloganeering demanding the resignation of the Finance Minister in five meetings of the House of Representatives.

After the issue of the bank account was continuously raised, Finance Minister Mahat announced his resignation in the House of Representatives meeting on 16th Shrawan 2053. After he announced his resignation, the MPs of the main opposition UML welcomed him by banging the table. During his resignation, Mahat had said, ‘I have resigned to the Prime Minister so that it would be easier to find a way to resolve the charges against me.’

He had expressed his belief that morality and ideals would be maintained. He had informed that the money in the bank in New York had been earned through his hard work. He had said that the money was completely legitimate. ‘If I am found guilty of a crime, I am ready to stand before any court of justice. I must prove myself innocent on legal grounds.’ He had said that he has not added a single penny to the account since coming to Nepal.

Stating that he was firm on his moral values ​​and beliefs, he had said that he would not have to pay taxes on the income he earned abroad. 'Politics is a 'moving chair'. Everyone should sit on its floor and pass the exam,' he said. The issue of opening an account in a foreign bank and depositing money had disrupted the House for five days.

The Kantipur Daily, which focused on the main opposition party UML's demand for the resignation of Finance Minister Mahat, published a news story on 17th Shrawan 2053 under the title 'Finance Minister Dr. Mahat resigns'. News was published day after day about the situation that arose in the House due to Mahat's account in a foreign bank. Mahat had said that he was ready to give up public life if the charges were proven.