From swearing-in to crackdown: PM Shah’s first moves shake national politics

The swearing-in of Balendra Shah as Prime Minister marks a dramatic shift in Nepal’s political landscape, followed swiftly by bold actions from his administration. Within a day of assuming office, his government ordered the arrest of former Prime Minister KP Sharma Oli and former Home Minister Ramesh Lekhak, holding them accountable for the deaths of 19 youths during the September 8–9 protests, based on findings from an investigative panel.

These arrests triggered widespread backlash. The Communist Party of Nepal (Unified Marxist–Leninist) launched nationwide protests, while the Nepali Congress also raised objections, citing concerns over the lack of due process. Legal experts have similarly argued that proper legal procedures were not followed in the arrests of Oli and Lekhak.

At the same time, the government intensified its anti-corruption drive by initiating money laundering investigations against top political figures. This included the arrest of Dipak Khadka after a large amount of allegedly illegal cash was discovered at his residence during the Gen Z protests. According to local media reports, the Balen administration has also begun investigating the assets of former prime ministers, including Sher Bahadur Deuba.

Alongside these crackdowns, the Shah-led cabinet unveiled an ambitious “100 tasks in 100 days” reform agenda aimed at restructuring the bureaucracy and depoliticizing state institutions. The government has also pledged to establish a new commission to fully investigate the September 9 protests, addressing gaps left by earlier inquiries, and announced plans to form a powerful body to scrutinize the assets of public officials dating back to 1990. Other initiatives are focused on improving public service delivery.

Meanwhile, a rift has escalated within the Nepali Congress. A special general convention held in January reportedly removed Sher Bahadur Deuba from party leadership and elected Gagan Kumar Thapa as the new party head. In response, the Deuba faction filed a case challenging the legitimacy of the convention. Both factions have since been conducting parallel political activities, deepening the party’s internal crisis.