The government maintains that as the armed struggle has already concluded, nobody is required to carry illegal weapons.
This new government has been tasked with steering the nation into the June 20 constituent assembly polls.
Koirala is currently busy in hectic consultations with his party colleagues as well as top leaders of the major political parties to form a new Interim government inclusive of the Maoists.
Koirala told the former rebel that they should wait until the constituent assembly elections expected in June.
Gyanendra said he was 'compelled to seize power as per the people's aspiration to reactivate elected bodies by maintaining law and order.'
Koirala said the government will immediately amend the Constitution to fulfil the genuine demands of the Terai people.
Interestingly for a section which had faith in gunpowder in the past, the Maoists have chosen a Buddhist monk as one of their independent representatives.
The government has said it would not promulgate the interim statute unless the arms management process starts.
He appreciated Prime Minister Koirala for successfully moving ahead with the peace process.
Home Minister Krishna Prasad Sitoula and Maoist spokesman Krishna Bahadur Mahara signed the 'Agreement on Monitoring of the Management of Arms and Armies' in the presence of UN officials.
The government issued a circular that all government offices, schools and colleges will be closed to celebrate the historic peace accord that aims to put an end to the insurgency that claimed 15,000 lives.
The draft agreement was struck on November 8 and had been due to be signed last week but was postponed as both sides said some issues still had to be resolved. A Tuesday deadline was then set.
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