He was criticized for neglecting demands for more inclusive leadership and accused of trying to turn the organization into a national party.

[9] A faction led by Bhattaraj conducted a central committee meeting in Jadibuti, Kathmandu on 12 and 13 July 2021 which concluded in the formation of the Socialist Party of Nepal.

[10] Several central committee members from the previous party, including Hisila Yami, Ganga Narayan Shrestha, Bhakta Bahadur Shah, Prashant Singh, Damber Khatiwada, Dan Bahadur Chaudhary, and Durga Sob, joined the new group.

[13][14] Nepal Samajbadi Party (Naya Shakti), began its first national convention in Kathmandu, with 1,500 representatives electing its leadership.

Currently unrepresented in parliament, it aims to reshape Nepal’s political landscape and build progressive alliances.