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Lama was forced to resign from the post of minister of state for finance in 2011 after being charged with holding multiple foreign passports and citizenship certificates. Lama, who is accused of possessing a Nepali passport, an Indian passport, a Tibetan refugee identity card and citizenship certificate from various districts of Nepal, was former CA member from the CPN-UML.
Lama who served for a few months as the minister of state for finance under the Jhalanath Khanal-led government was later forced to resign following a controversy over his multiple identities. Lama is also known as a long-time associate of Free Tibet Movement.Police are preparing to file an arms and ammunition case against Lama.