"The guerrillas Sunday evening torched a passenger bus on Ilam- Jhapa road section along the Mechi Highway of Ilam district, some 500 km east of Kathmandu," the district police said in a press statement.
The guerrillas set the bus on fire at Barne area along the highway after forcing all passengers to get off the bus, the statement noted, adding "nobody was hurt in the incident".
The bus was on its way from Ilam to Birtamod city of eastern Jhapa district.
The traffic movement along Ilam-Jhapa route came to a complete standstill on Monday after the incident, the statement added.
At least 38 people died and more than 72 others were injured when a passenger bus hit a landmine planted by the guerrillas in central Nepal about a month ago.