In a dramatic shift in governance style, Prime Minister Balendra Shah (Balen) reportedly ordered the immediate arrest of his own Industry, Commerce, and Supplies Minister, Gauri Kumari Yadav. The abrupt directive has sent shockwaves across the political and security echelons, particularly because the Prime Minister bypassed standard administrative protocols, such as seeking an explanation or issuing dismissals.
The Prime Minister’s wrath was triggered by suspicions that Minister Yadav independently reduced petroleum prices and leaked sensitive information before the official announcement. According to sources, PM Shah directly called Inspector General of Nepal Police (IGP) Dan Bahadur Karki on the night of June 30 around 10:30 pm, directing him to detain and interrogate the sitting minister.
The abrupt order sent top police leadership into a panic. As Yadav does not reside in a government quarters, police deployed a backup team, including a siren-equipped van, to surround her private residence in Sinamangal.
A senior police official, speaking on the condition of anonymity, stated, "The Prime Minister calls directly in serious cases. When the order came to pick up a sitting minister for interrogation, we were panicked. The IGP was bewildered and immediately held high-level internal consultations. We decided to keep her under surveillance instead of executing an immediate arrest."
Terrified by the sudden police presence, Minister Yadav contacted her party chairman, Rabi Lamichhane of Rastriya Swatantra Party (RSP). Seeking to defuse the crisis, IGP Karki consulted both Lamichhane and Home Minister Sudhan Gurung. Both political leaders agreed that, under these circumstances, arresting a sitting minister was unacceptably risky.
To tactfully decline the Prime Minister's directive, the IGP cited constitutional protocol, informing PM Shah that arresting an incumbent lawmaker requires formal clearance from the Parliament Secretariat. Faced with this procedural hurdle, the Prime Minister eventually backed down.
The friction stemmed from an unsanctioned decision regarding fuel pricing. On the afternoon of June 30, Minister Yadav had met with the Nepal LP Gas Industry Association to discuss reverting to full gas cylinders, following a half-cylinder policy enacted during the Iran-US/Israel conflict. While the PM’s office explicitly instructed her aide, Ankit Kumar Yadav, to halt any decisions, the Ministry of Industry went ahead and influenced the Nepal Oil Corporation (NOC) to slash prices later that evening.
By 10:31 pm, NOC announced a steep reduction: petrol dropped by Rs 20 per liter, diesel by Rs 30, and cooking gas by Rs 100. The Prime Minister's Office suspected that the price drop was leaked during the Minister’s daytime meetings with industrialists, leading to collusion allegations.
While the RSP leadership has been actively shielding its ministers from the PM's intense scrutiny, a member of the Prime Minister's secretariat confirmed the underlying intent but remained tight-lipped about the extreme enforcement measure.
"While the Prime Minister was highly dissatisfied with the Industry Minister’s actions, I don't know if he explicitly ordered her arrest—and I can't comment on things I don't know," said an official from the Prime Minister’s secretariat.
Following the midnight turbulence, IGP Karki departed for New York on July 5 to attend the 5th United Nations Chiefs of Police Summit 2026, while Minister Yadav has avoided public comment on the matter.
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