The accident took place yesterday when the jeep was heading towards Charchare of Dandajheri from Balungtar in the district, slipped off a mountain highway, about 170 km from the capital city of Kathmandu, police said.
"The condition of three injured, including the driver, was critical," District Police officer was quoted as saying by the Himalayn Times.
Police suspects that the casualties occurred when the jeep hit a crowd of people. The jeep fell some 300 metres from the road, that killed seven and injured 16, after hitting the people.
Road accidents are very common in Nepal and occur mainly due to poorly maintained roads and vehicles.