In a letter to his party’s general secretary, written shortly after his resignation amid mounting Gen-Z-led protests, Oli claimed he would not have lost power had he not challenged India’s position on the Lipulekh region and the birthplace of the Hindu deity Ram.
The core of the Nepal–India dispute lies in the Lipulekh Pass and the Kalapani region, territories both countries claim. Under the 1816 Sugauli Treaty, the Kali River’s origin was designated as the boundary. Nepal maintains that the river begins in Limpiyadhura, placing Lipulekh and Kalapani within its territory. During Oli’s tenure, his government took a hard line, demanding that India halt road construction in the disputed zone.
India, however, insists the Kali River originates near Kalapani village, making the area part of Uttarakhand state. New Delhi further argues that trade with China through Lipulekh has been ongoing since 1954.
Tensions deepened in July 2020 when Oli made a controversial statement, asserting that Lord Ram was not born in India but in Nepal. He claimed the ancient kingdom of Ayodhya was located in Birgunj, eastern Nepal, accusing India of fabricating a “fake Ayodhya.”
“Would Ram have traveled such a long distance from Uttar Pradesh to Janakpur to marry Sita? Such practices did not exist in ancient times,” Oli argued, sparking outrage across India.
Oli now believes his firm stance on these two highly sensitive issues—territorial sovereignty and cultural heritage—was the decisive factor behind his loss of power.