According to reports from Dhading district adjacent to Kathmandu, fighters organized under the banner of Youth Force affiliated to the Unified Marxist-Leninist (UML) murdered a Maoist party worker.
Krishna Bahadur Bhandari, the victim, was thrown into the Trisuli river on Sunday, reports say.
Following the murder, the situation in villages as well as on the Prithvi Highway has got tense, say Kathmandu-based FM stations.
It is learnt that initially the UML cadres and Maoist workers did have a clash in Baireni village.
Local people arose in angry protests against the murder of the political worker.
Maoists, who have lost more than 200 cadres after they entered the mainstream peace process in 2006, head the current coalition government after the people elected them as the largest political party of Nepal.
The UML is one of the coalition partners in the current Maoist-led government mandated for facilitating the process of drafting a new federal democratic republican constitution to replace the monarchy abolished on May 28.