"We have not received any official communication from Kathmandu over Ambassador's recall. What we know is only through media. So, he very much remains in his current position," sources in the Nepal embassy told PTI here.
Though no formal announcement was made about Upadhyay's recall by the Nepalese government, reports emerging from Kathmandu quoting unnamed Foreign Ministry officials said he was being recalled because of his alleged role in the power struggle that nearly deposed Oli's government.
However, earlier in the day, the Nepalese envoy reportedly rejected the charges, saying he did not conspire with the Indian government to bring down Prime Minister K P Oli-led coalition rule in Nepal.
He also denied having visited the restive Madhes region in Nepal's foothills with Rae.
Nepal had yesterday cancelled the visit of its President Bidhya Devi Bhandari to India hardly 72 hours before her departure for Delhi. Though no reason was assigned for cancellation of the trip, it was believed to indicate Nepal's unhappiness with India over the latter's alleged meddling in the internal affairs of the Himalayan nation.