I sent my passport for renewal with all required documents asked by Nepalese Embassy in DC.
It has already been 10 months and each month I have been calling them to get updates and only answer they are giving me is " I am not the only one with this situation. There are about 300 people with delayed passport. They are trying to get answers from ministry of foreign affairs but they dont know why it is in pending status. They can't do anything coz they dont print passport. There job is to collect application and forward it to Ministry of Foreign Affairs, other then that they dont have role in passport making process".
All my documents like old passport with visa , my nepali nagarikta card is with them. Is there any place where I can report this Issue other than embassy?

What kind of status are you in the US? I think they usually return your original ID card! Anyway, tonight try calling passport office

They keep all your old documents and nagarikta at the Embassy so you don't need to worry about losing them. I'm a tad surprised that they took this long.

I am in the same boat as you are. I have called them so many times, asked them if they have any RFEs, every time they just reply "no update, and you are not the only one" ,
it is really frustrating. It has already been 8 months..

What these twats at nepalese embassy do is gather as many passports as they can and then send them in bulk to Nepal. They do this to save money. So if your passport was one of the first ones to arrive in the embassy, you will have to wait a long time.

I live in Europe and I had sent my passport for renewal to the nepalese embassy of Spain. Apparently they had changed the application form and had not updated their website. So I had sent them the out-dated application form that was on their website. As a result my application was not processed and they did not bother to notify me. I had to call them 3 months later to find out that my documents were lying on their desk.
That is the state of public service in nepalese institutions.