He was elected as Prime Minister for the second time when he succeeded Girija Prasad Koirala, who resigned in July 2001. A coup d'etat by King Gyanendra removed Deuba in October 2002.
After two other governments, much political protest for his restoration especially in capital Kathmandu, Gyanendra restored Deuba to the position of Prime Minister in 2004.
He was removed on February 1, 2005 by King Gyanendra, who dissolved the government for three years and seized direct power.
He was sentenced to two years in prison in July 2005 under corruption charges, but was subsequently released on February 13, 2006, after the anti-corruption body that sentenced him was outlawed. An official from Deuba's Nepali Congress Democratic Party, Dip Kumar Upadhaya, told the Associated Press that the former premier's release was "a victory for democracy and a humiliating defeat for the royal regime".
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