The Indian Embassy in Kathmandu says it doesn't approve of Indian territory being used for clandestine meetings between Maoists and Nepali politicians like the one between the UML and Maoist leadership near Lucknow last month.

"We would urge that all concerned should refrain from such activity in future," the embassy statement issued on Monday said. It also admitted it was possible that Maoists were using the open border to go back and forth, but denied it was giving them sanctuary. "The Maoist insurgency represents as much a threat to India's security as to Nepal, and we are committed to cooperating closely with Nepal in meeting this challenge," the embassy stated.

The embassy has also expressed concern over the extortion demands against two India-Nepal joint-venture companies and said the government had agreed to provide additional security.