The new chief of police, Pradeep Sumsher Rana, has admitted to the Public Accounts Committee (PAC) that his organisation had made a "mistake" in an agreement with the Indian Oil Company (IOC) for the exclusive supply of branded lubricants to the police force. The products are sold through a gas station (standing beside the main entrance to the police headquarters and which was constructed by the IOC as part of the agreement) managed by the Police Welfare Fund (PWF), a charity for former policemen.

The PAC had summoned the police chief to answer questions related to the agreement that is valid for 15 years. Members of the PAC subcommittee looking into the deal?MPs Prakash Chandra Lohani (RPP), NP Saud (NC) and Krishna Lal Maharjan (UML)?say that the PWF has already begun implementing the agreement, which gives the IOC the right to accept or reject any amendment. According to them, the IOC, which is both a party to the agreement and the final arbiter in the case of any dispute, may not be amenable to any changes suggested retroactively by the PWF. They also pointed out another faulty clause in the agreement which lays out that the Nepal Police and the PWF would pay for the supplies.

The police has been maintaining that the PWF is an organisation independent of the police. But PAC members differ arguing that its office bearers are ex-officio high-ranking police officials, instead of being elected under a separate constitution as is the case with NGOs.