Nepal witnessed a popular movement in 2006. The movement was aimed at restoring democracy. At the same time, the King reinstated the old Nepal House of Representatives, with an assurance of permanent peace and multi party democracy. The King called upon the Seven Party Alliance (SPA) to bear the responsibility of taking the nation on the path of national unity and prosperity.

The popular Government assumed office on 18^th May 2006 and withdrew all the privileges given to the King unanimously. 

The bill included.

1. Imposing tax on the royal family and its assets. 

2. Ending the Raj Parishad, a Royal Advisory council. 

3. Eliminating Royal references from army and Government titles. 

4. Declaring Nepal a secular country and not the Hindu Kingdom. 

5. Scrapping the National Anthem until a new one is composed. 

6. Eliminating the King’s position as the supreme commander of the army.

This is popularly known as ‘Nepalese Magna Carta’. Nepal became a Federal Democratic Republic with a President, a Prime Minister and a Council of Ministers in office to run the Government.