In a dramatic political development that has sent shockwaves through Kathmandu's corridors of power, the Deputy Prime Minister and Minister for Physical Infrastructure and Transport submitted his resignation to the Prime Minister late yesterday evening. The resignation comes just 48 hours after investigative journalists published documents allegedly showing systematic diversion of funds from a major highway construction project worth over 18 billion Nepali rupees. The Commission for the Investigation of Abuse of Authority had confirmed it was launching a preliminary inquiry into the matter.

The Deputy Prime Minister, a senior leader of one of the key coalition partners, held a brief press conference outside Singha Durbar where he denied all allegations but stated he was stepping down to protect the dignity of the office and allow an impartial investigation. Political analysts say the resignation threatens the stability of the fragile five-party ruling coalition, which holds a narrow majority in the House of Representatives. The coalition partner party has called an emergency central committee meeting to decide its next course of action, including whether to continue supporting the government.

Opposition parties have seized on the scandal, demanding a full parliamentary investigation and threatening to table a no-confidence motion if the government fails to ensure accountability. The main opposition leader told reporters outside Parliament that the resignation was merely a tactical retreat and demanded the immediate freezing of all assets linked to the accused. Student wings of opposition parties have announced protest programs across major cities starting tomorrow.

The Prime Minister's Office issued a terse statement accepting the resignation and affirming the government's commitment to zero tolerance for corruption. Legal experts note that the resignation does not shield the former Deputy PM from criminal prosecution if the CIAA finds sufficient evidence. The political fallout is expected to intensify in the coming days as Parliament reconvenes and coalition partners engage in urgent backroom negotiations to prevent the government from collapsing.