On June 20 he went missing and subsequently there was a search party (consisting of monks) from Shachung (Chinese: Xaichong Monastery) monastery that went out looking for him. Finally on July 1, after a two week long search they discovered Drakmar Phelgye's corpse in a ditch near the Police station.
After the body was discovered the Police sent it to Xinning City. The reasons for this move remains unclear.
In the afternoon of July 1 around 150 monks and local Tibetans gathered in front of the police station to demand answers about the discovery. They started to shout out questions to the Police about what happened, why did it occur under their watchful eye and who was responsible? An argument broke out in which one young monk got injured in the chaos.
To subdue the situation the police requested that the crowd disperse and return to their homes. They would conduct an investigation to find out what happened on that faithful day. However, the mob of locals and monks refused to leave the gates of the station.
On July 2 the Police released a statement about the events that lead to Phelgye's death. They explained that on the night of June 20 a policeman named Ma broke into the monastery disguised with a black cloth around his head. He entered Drakmar Phelgye room with one objective in mind, getting the key to the monastery's safe. However, Phelgye recognized Ma and asked him why he was doing this? The policeman in a panic gagged the monk, killed him and later disposed of the body in a ditch near the station.
Since 2008 Ma and few other policemen were responsible for patrolling and monitoring the Xaichong monastery area. It is unfortunate that those in charge of upholding the laws are the ones that violate it.
At 11:00 am on July 2 a meeting was held in the monastery. A decision was taken to go to Xinning City and claim Phelgye's body. However, the government fearing protests and demonstrations in the area decided to beef up security on the streets and posted army personnel around the area.