Elected MP from Bardiya- 1 in first General Election 1991 and Mid Term Election 1994 Gautam became the Deputy Prime Minister and Interior Minister in February 1997. He played a major role in splitting the CPN-UML over the issue of Mahakali treaty with India and later formed CPN-ML on March 5, 1998 and was elected General Secretary of the party in March of that year. The party failed to get a single seat in House in next election. Later, he again joined the CPN-UML.
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