After returning from a further medical visit to the United States, he had a series of audiences with King Birendra, as he tried for a "national reconciliation". During the student demonstrations in 1979, he was under house arrest. However, he welcomed King Birendra's call for a national referendum on the question of the political system for Nepal. The referendum results were announced to be in favour of retaining the political system led by the B. P. Koirala was the first leader to welcome the result of the national referendum and accepted the people verdict and claimed that the referendum was fair and free. However, owing to differences in the electoral process to seek membership of class organization as mandatory, Koirala demanded a boycott of the 1981 elections.