The government's intelligence failed again and it has become almost routine for the security forces to be unprepared for Maoist assaults. When the Maoists attacked Beni on Saturday night at 10PM, the security personnel were getting into their beds. After 12 hours, Beni was in ruins. The army's morale had already sunk when the government was not able to send reinforcements and ammunition while the battle was raging. By eight in the morning, DSP Ran Bahadur Gautam and 33 police were captured by the Maoists, who also ransacked all the ammunitions and guns from the police station. By nine, almost all the government offices had been destroyed. Besides burning papers and documents of local banks, the Maoists also looted a huge sum of money, the savings of many locals.

About 150 Nepalis lost their lives. Besides the Maoists and security forces, 30 civilians were killed and most of them from the air firing from the army helicopter. About seven labourers were killed in Jyamrukot. Laxmi Karki was hit when she was washing her dishes outside. Hemlal KC, a taxi driver had no idea that was going on and also got hit while he was driving in Bhagwati-2. In the fire set by the Maoists, two lodgers were killed in a hotel and the Maoists also shot dead an ordinary guard, Yogendra Gaur, of the DDC office. The Maoists also attacked their former cadres who had surrendered and taken refuge at the army post. "They asked us to join them again. When we refused, they started shooting and killed several others," says Chakrapani Acharya, who survived.