Kathmandu, July 26 - Nepal's Prime Minister Madhav Kumar Nepal Sunday dismissed reports in the Nepali and Indian media that his government was on an arms-shopping spree in India, saying they were 'baseless rumours'.

Summoned by a parliamentary committee Sunday to clarify his coalition government's stand on making fresh arms purchases from India and other internal issues, the communist leader said his government would not do anything to endanger the ongoing peace process.

Nepal also rejected speculation that his government was planning to clamp president's rule in the republic.

'According to the prime minister, no agreement has been signed with the Indian government to purchase arms,' Nepal's foreign affairs advisor Rajan Bhattarai told IANS.

The controversy arose after Nepal's Defence Minister Vidya Bhandari went to New Delhi on a week-long visit last week. Though described as a visit for receiving medical treatment at New Delhi's Apollo Hospital, Bhandari met her Indian counterpart A.K. Antony as well as Indian politicians like Leader of Opposition L.K. Advani.

Bhattarai said the subject of 'resuming military assistance might have cropped up during the meeting between the two defence ministers but no agreement was signed'.