[3] Krishna Shamsher because of political pressure from his brothers handed over Sital Niwas to the Government of Nepal in 1948 and later fled Kathmandu to Bangalore in 1961.

After the fall of Rana regime Sital Niwas was used by Government of Nepal as Stately Guest House and later converted into Ministry of Foreign Affairs.

Former foreign minister Ramesh Nath Pandey asked the government to honor the will of Krishna Shumsher, who donated the building for use as state guesthouse.

They include Indian prime ministers Jawaharlal Nehru, Chinese premier Zhou Enlai, Queen Elizabeth II, Pakistani President Ayuub Khan, Indian presidents Rajendra Prasad and Radha Krishnan, and the then Japanese prince Akihito.

Shital Niwas remained as state guesthouse until the Ministry of Foreign Affairs was relocated there from Singha Durbar in the late 1970s a few years after a massive fire that engulfed the government's principal secretariat.