Third term

Koirala became Prime Minister in 2000 for his third term following the resignation of Krishna Prasad Bhattarai, under whose leadership party had won the parliamentary election. The Nepali Congress Party had won the election claiming Krishna Prasad Bhattarai would be the Prime Minister, but Koirala led a group of dissident MPs and forced Bhattarai to resign or face a no confidence motion. At that time Nepal was fighting a civil war against the Communist Party of Nepal (Maoist). During his third term as Prime Minister, his government was plagued by allegations of corruption. Following the massacre in the Royal Palace, Koirala was further criticized for his perceived inability to handle the crisis. Koirala resigned in July 2001 following which the military was mobilized in the civil war for the first time, something Koirala had unsuccessfully attempted to do while in office. He was replaced by former Prime Minister Sher Bahadur Deuba, who was elected by majority of members of Nepali Congress.