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The Nepal government and the family of 25-year-old ride-hailing driver Ganesh Nepali, who died after setting himself on fire following a dispute with municipal police in Kathmandu, signed a nine-point agreement on Sunday, ending days of deadlocked negotiations.

The breakthrough came after Home Minister Sudhan Gurung joined talks at the District Administration Office in Kathmandu. The family was represented by Nepali's wife Ekmaya Nepali, brother Madan Nepali, relatives Hikmat Shahi and Dhurba Raj Shahi, and Mugu lawmaker Khadga Bahadur Shahi.

Negotiations resumed on Sunday afternoon after multiple rounds of discussions, including late-night talks on Saturday, failed to produce a settlement.

Following the agreement, the family agreed to receive Nepali's body from Tribhuvan University Teaching Hospital in Maharajgunj to perform his last rites.

The agreement was signed on behalf of the authorities by Kathmandu Chief District Officer Ishwaraj Poudel and Kathmandu Metropolitan City's Chief Administrative Officer Saroj Guragain. Ekmaya Nepali, his parents Chine Nepali and Saura Nepali, and brother Madan Nepali signed on behalf of the family.

Government Announces Probe, Relief Measures

Under the agreement, the Nepal government will constitute an independent investigation committee headed by a retired judge to examine the circumstances that led to Nepali's death.

The family's demand to declare him a martyr will be considered after the committee submits its findings, in accordance with existing laws and past government practice.

The government will also direct Kathmandu Metropolitan City to immediately suspend the municipal police personnel involved in the incident.

The metropolitan city has committed to offering employment to Nepali's wife based on her qualifications through a decision of its executive committee. It will also provide financial assistance to the family, bear funeral and post-death ritual expenses in Kathmandu, and cover the family's travel, accommodation and other living costs in the capital during the mourning period.

Additionally, the Ministry of Health and Food Hygiene will arrange comprehensive health insurance for the family, while the local administration and relevant ministries will coordinate with Kathmandu Metropolitan City to ensure the complete education expenses of Nepali's daughter are covered through higher education.

In return, the family agreed to cooperate with authorities in completing all legal formalities, including the post-mortem examination.

Tragedy Triggered By Parking Dispute

Ganesh Nepali, a resident of Soru Rural Municipality-6 in Mugu district, had been living in Bhaktapur's Kamalbinayak area. His family said he had mortgaged ancestral land to buy a motorcycle on instalments and earned his livelihood by working for ride-hailing platforms.

On Thursday, he allegedly set himself on fire outside the Department of Passports in Tripureshwar after municipal police wheel-clamped his motorcycle over an alleged parking violation. The confrontation reportedly also involved damage to a municipal police officer's mobile phone.

According to police, Nepali had dropped off a passenger near the department and was waiting for his next booking when an argument broke out with municipal police. After his motorcycle was wheel-locked and he reportedly refused to pay the fine, he returned nearly two hours later and set himself ablaze.

Doctors at Bir Hospital said Nepali suffered burns over more than 55 per cent of his body. Despite being placed on a ventilator and undergoing emergency treatment, he died on Friday morning, around 22 hours after the incident.

A government-arranged air ambulance had been kept on standby to fly him to AIIMS New Delhi, but doctors later concluded that he was too critically injured to survive the transfer.

Incident Sparks Political Row

Nepali's death has triggered widespread public outrage and political debate in Nepal over the treatment of low-income workers and the conduct of municipal authorities, Kathmandu Post reported.

The case was also raised in Parliament, with opposition lawmakers recalling a social media post written years ago by Kathmandu Mayor Balendra Shah, in which he had described an earlier self-immolation incident as a failure of the state to protect its citizens.

Videos circulating on social media, including CCTV footage of the dispute and footage showing Nepali being assisted to a vehicle after the fire was extinguished, have intensified scrutiny of the response by municipal authorities and emergency personnel.