In his sarcastic remark, Bhattarai said, "Now let's hope to hear the new Ramayan of Kaliyug from PM Oli."
"Such silly, unconfirmed and unproven remarks by the Prime Minister was not desirable. PM Oli's attention seems to have been drawn towards damaging Nepal's relations with India instead of improving them, which is not appropriate," said Kamal Thapa, former foreign minister and president of the pro-Hindu Rastriya Prajatantra Party.
Senior leader of the ruling Communist Party of Nepal (NCP) Bam Dev Gautam said that Prime Minister Oli should withdraw his controversial remarks on Ayodhya.
"The statement made by Prime Minister Oli was without any evidence and it has only created controversy within and outside the country, so he must withdraw the statement and apologise for that," Gautam wrote on his Facebook page.
There are large numbers of devotees of Lord Ram both in Nepal and India, and no one should hurt people's religious faith," Gautam said. "For a realistic communist, it makes no difference whether Lord Ram was born here or there."
"Such senseless and irrelevant remarks made by a person of the high position will damage the country's prestige," said Bishnu Rijal, deputy chief of the Publicity Committee of the ruling party.
"It was folly for PM Oli to wade in and raise controversy on the placement of Ayodhya, home of the mythological Lord Ram," tweeted senior journalist of Nepal Kanak Dixit. "This creates a schism with a section of India's population when earlier it was only with the Indian Government.