Nepal do not care if an asylum is fake or not, it simply understands as a renunciation of Nepali citizenship by asylee for them to gain an asylum status in other country. I am not for or against this policy of Nepal, but just trying to explain why Nepal do not renew an asylee's passport. Matter of fact many countries do the same including India. As far as Passport to travel other countries, one can always get a travel document which allows them to travel most of the countries.