Nepal's Home Minister Resigns Amid Controversy Over Business Ties

Sudhan Gurung, Nepal's Home Minister, has resigned amid allegations linking him to share transactions with a businessman under investigation for money laundering. His resignation comes after public scrutiny regarding his financial dealings and potential conflicts of interest. Gurung, who gained prominence following the Gen-Z protests, emphasized the importance of public trust and morality in his decision. As the investigation unfolds, he has defended his actions, claiming transparency in his financial disclosures. This situation raises significant questions about governance and accountability in Nepal's political landscape.

By Narendra Chaudhary Apr 22, 2026, 15:44 IST

Resignation of Home Minister Sudhan Gurung

On Wednesday, Sudhan Gurung, the Home Minister of Nepal, stepped down following allegations linking him to share dealings with a businessman under investigation for money laundering. Gurung submitted his resignation to Prime Minister Balendra Shah and announced his decision on social media. He gained prominence after the Gen-Z protests in September and was elected from Gorkha in the March 5 elections, subsequently becoming a member of parliament and the Home Minister.

In a Facebook post, Gurung stated, "I, Sudhan Gurung, have served with integrity as Minister of Home Affairs. Recently, I have taken seriously the concerns raised by the public regarding my shareholdings. For me, ethics outweigh position, and public trust is paramount. The Gen Z movement in our country advocates for good governance, transparency, and accountability, emphasizing that public life must be clean and leadership accountable. If anyone questions the government formed through the sacrifices of my 46 brothers and sisters, the answer lies in morality."

He further explained, "To ensure a fair investigation regarding my involvement and to avoid any conflict of interest while in office, I have decided to resign from my position as Home Minister, effective immediately."

Gurung's Rise and Recent Criticism

Prime Minister Shah appointed Gurung to his Cabinet on the day he took office. Initially, Gurung garnered attention for his actions against high-ranking officials, including arrests. However, he faced increasing criticism in recent times.

Pressure mounted for Gurung to resign after it was revealed that he owned shares in companies linked to the controversial businessman Deepak Bhatt, who was recently arrested for money laundering. Documents released on Sunday indicated that Gurung held shares in Star Micro Insurance and Liberty Micro Insurance, both associated with Bhatt and currently under investigation.

Gurung's Defense Against Allegations

In response to the allegations, Gurung issued clarifications, denying any concealment of financial information. He stated that his total investment in the securities market exceeds NRs 20 million, with all details available in official records. "I would not hide NRs 2.5 million worth of shares when my total declared assets exceed NRs 20 million. This is merely a classification issue," he asserted.

Gurung maintained that the shares in question were acquired before he took office and were part of his declared portfolio. He emphasized that being a shareholder does not equate to a direct association with all individuals linked to a company.

Investigation and Allegations of Misinformation

Addressing concerns about potential conflicts of interest, he noted that the investigation into Bhatt is being conducted by the Department of Money Laundering Investigation, not the Home Ministry. Gurung dismissed the allegations and media reports as "sponsored rumors," claiming that corrupt individuals unsettled by ongoing actions against them are spreading misinformation.

He vowed that actions against those accused of embezzling state funds would continue. "Those who have long targeted the nation's treasury, built on the hard work of the people, are now fearful," he stated. "Media trials and sponsored rumors reflect their desperation."

Expressing dissatisfaction with what he described as a coordinated campaign against him, Gurung insisted that the actions would not cease, noting that he had not seen similar efforts to pursue individuals involved in large-scale corruption. While he claimed his investments were made through a bank loan, he did not disclose this in the asset declarations submitted to the Office of the Prime Minister and Council of Ministers, which were made public last week.

Concerns Over Share Declaration

His investments, valued at NRs 2.5 million each in Star Micro Insurance and Liberty Micro Insurance, were not disclosed separately. Instead, they were included in a broader figure of NRs 27.45 million listed under shares traded in the securities market. It was later revealed that these companies had not yet begun public trading, raising questions about how such shares were categorized in the declaration.