The internal dispute that had been simmering within the UML had reached its peak after groups supporting and opposing the Mahakali Treaty emerged. The party had asked 26 UML leaders who were opposed to the Mahakali Treaty for clarification. Internally, a huge gap had formed between those who approved the treaty and those who did not.

The Mahakali Treaty was not mentioned on the surface, but former Deputy General Secretary and Standing Committee member Bamdev Gautam had put forward a proposal to remove Madhav Kumar Nepal from the post of General Secretary. Leaders including Bamdev Gautam, Radhakrishna Mainali, Sahana Pradhan, CP Mainali were against the Mahakali Treaty. They were the ones who wanted to remove General Secretary Madhav Nepal.

After two factions formed within the party, the Standing Committee met for 18 days to resolve the dispute. But no solution was found. In the same context, in the Central Committee meeting held on Falgun 13, 2053, serious allegations were made against Bamdev's character and behavior. In the Central Committee meeting, Ishwor Pokharel, a central member of Madhav's side, made serious allegations in writing against Gautam, including embezzling more than 30 million rupees, buying MPs to bring a no-confidence motion against Prime Minister Sher Bahadur Deuba, misappropriating foreign currency, and taking commissions in employee transfers. There was a huge uproar after Pokharel put forward a written proposal in the Central Committee meeting demanding action against Gautam. Pokharel was an advisor to Prime Minister Manmohan Adhikari during the nine-month rule of the UML.

The dispute that began with leaders including Gautam proposing to remove Madhav from the post of general secretary and asking for an explanation from those opposed to the Mahakali Treaty, led to questions about each other's character rather than finding a solution. The nine-month-old UML government collapsed in Bhadra, 2052, following a no-confidence motion. At that time, Gautam was accused of giving 20 million rupees from the party fund to Umesh Giri to save the UML government. Ishwor Pokharel had accused Gautam of financial fraud in a report, saying that he had given 50 million rupees to Deepak Bohara to buy RPP MPs in favor of the first no-confidence motion.

Gautam was accused of taking commissions from various places for transferring employees, including the Tribhuvan Airport Customs Office, during the nine-month UML government. Pokharel had also accused Gautam and Radhakrishna Mainali of investing 20 million rupees in Surya Prakashan Pvt. Ltd., the publishing house of the dailies 'Shri Sagarmath Dainik' and 'Angrezi Patrika Everest Herald'.

Pokharel had demanded that Gautam be removed from the standing committee for violating the party whip on the issue of passing the Mahakali Treaty and engaging in undesirable activities in the name of bringing the power equation in favor of the UML. Since Gautam's party had a majority in the Standing Committee, internal party issues had also come to the surface in the name of countering it. Pokharel had accused Gautam of political incitement in the report, of a belief that he would not come to power no matter what, and of a mindset that he would not be able to do so without following the RPP. In the 16 months since the Deuba government was formed, the UML had already brought a no-confidence motion twice, and the no-confidence motion had failed both times. The UML had agreed to remove Deuba from the no-confidence motion and make RPP parliamentary party leader Lokendra Bahadur Chand the prime minister.

In an attempt to topple the Deuba government, incidents such as buying and selling MPs and kidnapping them, sending them abroad on the pretext of illness, and arranging for a beauty salon were made public. There was also talk of spending crores of rupees for that. The talk was proven true after the same accusation was made against Gautam from within the party at the central committee meeting. All the issues were formally made public by the UML leader.

The Deuba government was saved in the first and last no-confidence motions on Chaitra 11, 2052 and Poush 9, 2053. In the second vote, the buying and selling of MPs and kidnapping were considered the main reasons for the Deuba government's survival by 2 votes. At that time, the incident of the then Home Minister Khum Bahadur Khadka from the Congress and Gautam of the UML being more active in the game of maintaining and overthrowing power was made public. On the day of the second no-confidence motion, 14 MPs were absent. Even though the government was saved at that time, the effort to bring a no-confidence motion again did not stop. Apart from the Deputy Speaker, the RPP was still trying to overthrow the government with the support of 19 MPs.

The three-point and 10-point proposal presented by UML leader Pokharel to the central committee documented the unnatural activities carried out to maintain power in the parliamentary system. Bamdev had presented a 15-point indictment against Madhav in the previous day's meeting. After Madhav leveled charges against Nepal, questions were also raised against Bamdev Gautam.

Modnath Prasrit, who stood in favor of the Mahakali Treaty, had demanded the dissolution of the party's standing committee. The Bamdev side had a majority in the local committee. Party president Manmohan Adhikari, however, stood in favor of not removing the general secretary. Some leaders in the party had said that the UML organization expanded when Madhav was the general secretary and the party's image increased at the international level after the Mahakali Treaty was passed.

The news, prepared based on the context of the extreme controversy seen in the UML, the collusion between UML and RPP leaders to save the government, the buying and selling of MPs to save power, and the accusations of financial irregularities leveled against Bamdev by leaders of his own party, was published by Kantipur Daily on 14 Falgun 2053 under the title ‘UML Central Committee Meeting Continues: Bamdev Gautam Accused of Financial Scam’.