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The bus heading towards Gamgadhi, the district headquarters of Mugu district, from Nepalgunj fell into the Pina Jhyari river lying in the Chhayanath Rara Municipality, police said.
Many passengers on the bus were returning home from various parts of the country to celebrate the Vijaya Dashami festival.
A Nepal Army chopper was dispatched from Surkhet for carrying out rescue work in the accident site.
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(By Shirish B Pradhan)