BBC: The deposed king of Nepal, Gyanendra, has moved out of the palace in the capital Kathmandu where his family lived for more than a century.
Mr Shah, as he is now known, and his wife Komal swept out of the compound in the back of a black Mercedes as scores of riot police guarded the main gate.
Earlier, he said he had returned his crown but would not go into exile and would work for the republic's benefit.
Last month, Nepal's Maoist-led assembly voted to abolish the monarchy.
The palace in the centre of Kathmandu is to become a museum.
Gyanendra and his wife are moving to a new, temporary residence outside the city.
'The people's verdict'
A police and army escort followed the ex-monarch's car as he left for Nagarjun, in the north-western suburbs of Kathmandu.
The couple will live in a large, comfortable but ordinary-looking house there.
A few loyalist onlookers called for Gyanendra to stay on as his car left but many in the crowd near the palace seemed happy to see him go, correspondents say.
"This marks the beginning of a new Nepal and the end of a dynasty that has done nothing but harm this country," Devendra Maharjan, a farmer who had come to Kathmandu to see the king leave the palace, told The Associated Press.
"If it had not been for the kings, Nepal would probably not have remained a poor nation."
Giving an unprecedented news conference at the palace earlier, the former monarch said he had given his priceless crown to the Nepalese government for its protection.
"I have no intention or thoughts to leave the country," Gyanendra said.
"I have assisted in and respected the verdict of the people." Nepal's Ousted King Quits Palace >>> | June 11, 2008
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