Kathmandu, June 26: A Maoist activist was killed in a gunfight in eastern Nepal even as a rebel delegation returned to Kathmandu today in preparation for a third round of peace talks, officials said. The Maoist was killed yesterday in the village of Kholang in Bhojpur district, 340 km east of Kathmandu, after a group of six rebels appeared to be taking hostage a local businessman, an Army official said.

Troops tried to intervene, but one of the rebels threw an explosive at them, he said.

"The Army shot dead the man who hurled the bomb, who was identified as Pawan. The others ran away from the scene leaving behind the businessman," the official said.

A Maoist source in Kathmandu gave a different account of the incident, saying the activist was shot dead by an Army patrol as he and the five others tried to contact a rebel leader from a public phone booth. The five others ran away after the shooting, he said.

The killing was the latest to mar a truce in place since January 29. Last week seven Maoists and a civilian were reported dead in a confrontation between rebels and the Army in a village in western Nepal.

Five Maoist leaders led by chief negotiator Babu Ram Bhattarai returned to Kathmandu after touring Nepal for a week and a half and addressing a number of public rallies.

Bhattarai is believed to have held talks with the Maoists' elusive leader Pushpa Kamal Dahal -- better known as Prachanda, -- about the third round of talks with the government.

Bureau Report