"Ambassador Deep Kumar Upadhyaya has been accused not only of non-cooperation by the coalition government but also of breaching his jurisdiction time and again without informing the government," reported the Kantipur newspaper, a major Nepali language daily.
Upadhyaya had "confronted" Prime Minister K P Sharma Oli regarding the cancellation of President Bhandari's scheduled visit to India, government sources had said.
He has also been accused of visiting western districts of the country accompanying Indian Ambassador to Nepal Ranjit Rae without informing the government.
The government was not satisfied with the performance of Upadhyaya and he was accused of not playing any role to protect national interest during the crisis period or the border blockade, the Nagarik daily said.
Oli discussed the matter with Foreign Minister Kamal Thapa yesterday before taking the decision to call back the ambassador, it said.
On Wednesday, Bhandari had said the aim of her visit to India was to "to create goodwill and clear misunderstanding".
Upadhyaya has been also been accused of involvement in trying to topple the Oli government.
On Thursday, Oli survived a threat to his government after a U-turn by Prachanda-led UCPN-Maoist which decided not to withdraw support to him "for the time being".
Oli suddenly took the decision to cancel the president's visit alleging that India played a role in attempting to change the government in Nepal, the Nagarik report said.
A cabinet meeting held yesterday did not endorse the head of state's planned trip to India which was to begin on May 9, the daily said.
The visit to India would have been Bhandari's first foreign trip after assuming office in October. She was also scheduled to participate in a 'Shahi Snan' in Ujjain's Simhastha Kumbh on May 14.
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