Nepal has been claiming that India has unilaterally encroached on Nepali territory by setting up a military camp in the Kalapani area of ​​Darchula. In particular, the Sugauli Treaty of 1816 has considered the Kali River as a 'border river'. The main dispute at present is which is the source of the Kali River. However, India has not considered this a disputed issue. Nepal claims that India has unfetteredly set up its military camp in Nepal. If the dispute over which is the Kali River is accepted, then the boundary of the Kalapani area should be considered disputed and a solution should be sought, so India probably does not want to discuss it now. However, in 2054, during the visit of Indian Prime Minister Indra Kumar Gujral to Nepal, it was accepted that the Kalapani area was a disputed land. Therefore, in the agreement reached to implement the Mahakali Treaty, it was agreed at that time to assign the responsibility of determining the source of the Kali River to a joint technical committee consisting of representatives of both countries. In an agreement reached in Kathmandu on 23 Jestha 2054 between Indian Prime Minister Gujral and the then Prime Minister of Nepal Lokendra Bahadur Chand, it was decided to assign the responsibility of determining the source of the Kali River to a technical committee. According to the agreement between Gujral and Chand, who came to Nepal on a three-day visit, the issues of the origin of the Kali River and military camps were discussed. At that time, the Prime Ministers of both countries had agreed to study the disputed issues and finalize them through a technical committee.

On the night of 4 Asoj 2053, a two-thirds majority of the Parliament passed the Treaty on the Integrated Development of the Mahakali. During Gujral's visit, documents related to the provisions of the treaty were exchanged between the two Prime Ministers on 23 Jestha 2054. After the exchange of documents, attention was drawn to the origin of the Mahakali and Kalapani in a high-level discussion held at Singha Durbar. After the meeting, Indian Prime Minister Gujral told reporters, "We have decided to hold a meeting within a month to direct the Border Technical Committee to resolve the issue regarding the Nepal-India joint border on the Mahakali."

A joint technical committee comprising the directors general of the survey departments of both countries was formed in the 1940s to monitor the Nepal-India border. It was also agreed to hold a meeting of the committee after two months. According to Foreign Minister Prakash Chandra Lohani, it was proposed to form a committee of relevant experts in the meeting to determine the border. However, Indian Prime Minister Gujral had said that the border committee would look into the origin point. Gujral said that a committee was working to look into the border issue. The prime ministers of both countries had agreed 15 months ago to consider the Mahakali a common river. The Mahakali Treaty was signed to provide for the integrated development of rivers including the Sharda Dam built in 1920, the Tanakpur Dam built in 1989, and the proposed Pancheshwar Project. But the dispute over the source of the Mahakali River did exist. When the Mahakali Treaty was passed by the Nepalese parliament, there was an agreement among political parties to clarify the status of Indian military camps in Nepal. According to the same decision, Nepal informed that a team of the Joint Technical Committee would be sent to Kalapani in the autumn, but India did not send a reply. The annual meeting of the Boundary Committee that exceeded the limit was held in Dehradun in 2053 Magh. In that meeting, India informed that it did not have permission to send a team regarding Kalapani. Finally, it was agreed that Nepal would provide India with aerial survey photos of the Mahakali border.

According to the agreement made in the presence of Prime Minister Gujral, the dispute regarding the Mahakali border, which was first raised by Nepal, was about to come up for the first time after a month. Until Jestha 2054, the joint demarcation of the Mahakali River, which forms the western border between Nepal and India, was only up to Brahmadev Mandi in Kanchanpur district. There was no border problem from Brahmadev Mandi to Mailikavachheu in Darchula in the north. The root of the problem was (and still is) a strait, where two branches of the river from West Limpiyadhura and North Lipulekh meet. After the Sugauli Treaty, an Indian named J.V. Tasen in 1837 specified the origin of the Kali as Limpiyadhura. After that, a map drawn by technicians from the Survey Department of British India considered Lipulekh as the source of the Kali. Since the 1962 India-China war, Nepal claims that India has been moving military camps up and down to claim Nepali territory in the Kalapani region. In the 1961 border treaty between Nepal and China, the river flowing from Lipulekh was considered the Nepal-India border. The treaty established the Nepal-India trilateral point at Chimabhanjyang in Lipulekh. In 2034, Nepal's border office was established in Chhangru, 5 hours beyond the border. Since then, India has been reporting to the government every year about its border violations in Kalapani. Recently, Nepal's survey team has stopped entering the Kalapani area.

The news prepared by a team including journalist Narayan Wagle, taking the implementation of the provisions mentioned in the Mahakali Treaty, the Kalapani dispute, and Indian Prime Minister Gujral's visit to Nepal as a reference, was published continuously in Kantipur Daily on 24 and 25 Jestha 2054. The headlines of the news were, ‘Nepal and India sign five letters of approval: Kalapani is the responsibility of the technical committee’, ‘Is the origin of Kali Limpiyadhura, Lipulekh or Kalapani?’

During Indian Prime Minister Gujral’s visit to Nepal, India had agreed to provide the Phulbari-Banglabandha transit route to Nepal. He also met with King Birendra and Ganeshman Singh at that time. He advised Nepal to open new technology industries. At that time, bilateral agreements were reached between Nepal and India on issues including Bhutanese refugees, electricity trade, and air services.