In Chaitra, 2053, less than 24 days after becoming the Home Minister, Bamdev Gautam replaced Inspector General of Police Achyut Krishna Kharel and appointed Dhruv Bahadur Pradhan as the Inspector General of Police. Similarly, on Asad 19, 2054, Gautam appointed Narahari Sangraula, who was accused of smuggling, to the Special Police Department with a gazetted first-class privilege in violation of all laws, rules and procedures.

Sangraula's appointment was heavily criticized both inside and outside the parliament. After the criticism increased, the State Affairs Committee then began an investigation into Sangraula's appointment. A sub-committee formed under the coordination of MP Ramnath Dhakal for the investigation submitted its report to the House of Representatives on Bhada 5, 2054.

The sub-committee included MPs Urwa Dutta Pantha, Bipin Koirala, Tirtharaj Bhusal, and Jhalaknath Wagle. State Affairs Chairman Khadka was invited as an invited member. Chairman Khadka had submitted the investigation report conducted since the appointment process to the House of Representatives. The main opposition party, Nepali Congress, had demanded a discussion on the committee report, which was submitted unanimously. Gautam's appointment of Sangraula without following the rules and procedures and completely ignoring the provisions of the Act was widely criticized. MPs had demanded the resignation of Home Minister Gautam.

Gautam, who was considered very powerful in the government including the UML led by Lokendra Bahadur Chand, the leader of the Rastriya Prajatantra Party parliamentary party, had begun a political all-out attack. In particular, questions of morality were raised against him. UML leaders believed that the matter was settled since the appointed Sangraula had been removed.

After the opposition parties and the media started criticizing Gautam, former Prime Minister and UML Chairman Manmohan Adhikari defended him and called him ‘poor Bamdev’. Adhikari had said at an internal party program, ‘All the mischief and corruption has been done by other (RPP) ministers. Poor Bamdev has been attacked over a small matter like a fly.’

A written proposal was submitted for discussion against Gautam in the UML Central Committee, raising issues such as supplying liquor and beauty products to MPs for power, buying and selling MPs, embezzling party funds, and receiving commissions from customs. The proposal, presented by central member Ishwor Pokharel at the central committee meeting on Falgun 13, 2006, had caused Gautam a great moral crisis.

Despite serious allegations against him from within the party, the UML was forced to support RPP’s Chand in the game of making him the prime minister under his leadership. After that, Gautam became the Home Minister and became powerful in the party. After becoming the Home Minister, he changed the police chief and held local elections in two phases in 2054 Jestha. He was accused of widespread fraud. But praise began to spread within the party, saying that it was because of him that the party became the first force in the local elections.

At a congratulatory and training program organized for the party's local body Bagmati Zonal District Development Committee and municipality officials at the party office Balkhu on 2054 Bhadra 7, UML Chairman and former Prime Minister Manmohan Adhikari instructed them to defend themselves as there was an all-out attack against Gautam. He, who has been criticizing the government, had called for saving Gautam at the training program.

While speaking, Adhikari praised the role played in helping the UML win the local elections. He had said, ‘I would like to congratulate Comrade Bamdev especially for the circumstances in which he conducted the local elections.’ Earlier, immediately after the local elections, Adhikari had thanked UML for giving it a majority. Adhikari had expressed concern that Deputy Prime Minister Gautam was being attacked over small matters despite the big and serious issues in the country. He had said, ‘One person was appointed, but he was removed. It’s over.’

He had expressed his commitment not to let the government fall before the budget session of the fiscal year 054/55. He had said, ‘It will be seen after that.’ He had argued that it was difficult to build development because the Finance Ministry was not in his hands. At that time, the Finance Minister was Rabindranath Sharma of the RPP. Adhikari had complained that there were no high-level employees to support UML in training and said that only officer-level employees of the civil service had supported him. He argued that there was a fear of being trapped while working because the employees, police and army were created by others. He said that there was a fear that the party that came to power would be surrounded by corrupt and austerity elements and would spoil its style, and that this would lead to right-wing thinking.

At the two-day training program that began with the singing of the Proletarian International song, UML Bagmati Zonal Coordination Committee In-charge Surendra Pandey said that ideological politics in the party was weakening.

The news prepared by Kantipur Daily focused on the investigation conducted by the State Affairs Committee into the appointment of a person accused of corruption to the Special Police Department by Home Minister Gautam in violation of the rules and procedures, the opposition's demand for Bamdev's resignation, and the instructions given by UML Chairman Adhikari to defend Gautam on 28 Bhadra, 2011 under the title 'Officials call to defend Gautam'. Similarly, Kantipur had published a news story on Bhadra 6 regarding the report on Sangraula's appointment submitted to Parliament by the State Affairs Committee. The headline of the news was, 'The government has made mistakes on top of mistakes as it tries to cover up'. Home Minister Gautam and the then Chief Secretary had said that Sangraula was appointed under 'residual' powers.