KATHMANDU, May 12: Chiranjibi Nepal, the economic advisor to President Ram Chandra Paudel, has resigned following his controversial statement on the government’s decision to feature the new Nepal map on 100-rupee banknotes.

According to a press statement issued by the Office of the President, President Paudel accepted Nepal’s resignation on Sunday. President Paudel has thanked the service he provided during his tenure as his Economic Expert.

Earlier, a group of civil society leaders had demanded removal of Nepal over his remarks against the government's decision to print new hundred-rupee notes with the map of Nepal as per the amended constitution. 

They argued that Nepal, who is also a former governor of Nepal Rastra Bank (NRB), had gone against national interest and breached decorum while speaking to the national and international media on the matter. They further argued that the government deciding not to include the amended map would have amounted to national betrayal for backing away from claims upon our territory.

Those issuing a joint statement demanding his removal included former minister and ambassador to India Nilamber Acharya, former head of the Commission for the Investigation of Abuse of Authority, Suryanath Upadhyay, former commissioner at the National Human Rights Commission, Sushil Pyakurel, and writer and journalist Kanak Mani Dixit.

“The decision of the government has come at the most inappropriate time and without thinking of its larger implications,” former NRB governor Nepal told the Desh Sanchar portal on May 5. The following day, speaking to BBC Nepali Service, Mr Nepal described the decision to allow the NRB to use the map from the amended Constitution as an “irresponsible diversion” and made further problematic comments about sovereignty”, according to the joint statement.

"The irresponsible public comments of Mr Nepal have damaged the propriety and position of Nepal’s constitutional head-of-state. Given that the Office of the President has been silent on the matter, we are forced to consider that Mr Nepal is speaking on behalf of President Ram Chandra Poudel when he describes the government’s decision as being “against international values” and “unwise,” reads the statement. "In order to keep the position of the President of the Republic above controversy, we demand an immediate retraction from the Office of the President and the removal of Chiranjeevi Nepal from his responsibilities as advisor."

A cabinet meeting held on Thursday had decided to replace the existing map with the new one on 100 rupee notes. Indian External Affairs Minister S Jayashankar had expressed discontent over Nepal government's recent decision to feature the new map on Rs 100 notes. 

In his brief comment to Republica, Nepal stated that his remarks on the issue were distorted. He argued that he had highlighted the importance of resolving the issue diplomatically, as the decision to replace the new map on our banknote at this point in time could further worsen the national economy.

Stating that there was no point in giving any comments on the statement issued by the civil society group, Nepal said that he had taken the statement as an attempt to attack President Paudel.