Nepal's Home Minister Resigns Amid Financial Controversy

Sudan Gurung, Nepal's Home Minister, has resigned amid allegations of financial misconduct linked to a businessman facing money laundering charges. His resignation, announced via social media, aims to ensure an impartial investigation. This marks the second ministerial departure in a month under Prime Minister Balendra Shah's government, which was formed to combat corruption. Gurung's wealth, disclosed recently, raised eyebrows due to its sources, particularly his investments in a controversial micro-insurance company. His statements on wealth accumulation have sparked further scrutiny, highlighting the ongoing challenges of corruption in Nepal's political landscape.

By Narendra Chaudhary Apr 22, 2026, 16:51 IST

Resignation of Home Minister Sudan Gurung

File image of Nepal's HM Sudan Gurung(Photo: @deeptirana65058/X)

Kathmandu, April 22: Sudan Gurung, Nepal's Home Minister and a notable figure in the Gen-Z movement from last September, has stepped down from his role following a scandal regarding his financial activities.

Recently, Gurung has faced scrutiny due to his alleged connections with Deepak Bhatta, a businessman currently in police custody for money laundering allegations.

He made his resignation public through a social media announcement, stating, "To facilitate an unbiased investigation concerning my affairs and to prevent any conflict of interest while in office, I have decided to resign as Home Minister, effective immediately." He emphasized that ethics surpass position and that public trust is paramount.

Gurung is the second minister to resign within a month of the new government, led by Prime Minister Balendra Shah, which was established on March 27 after the elections on March 5.

On April 9, Prime Minister Shah dismissed Deepak Kumar Sah, the Minister for Labour, Employment and Social Security, based on recommendations from his party, the Rastriya Swatantra Party (RSP). Sah was found to have improperly retained his wife, Junu Shrestha, in a largely inactive role on the Health Insurance Board.

The current administration was elected with a strong mandate to tackle ongoing corruption issues in the nation.

On April 12, Gurung, alongside Prime Minister Shah and other ministers, revealed his asset details, showing him to be one of the wealthiest members of the cabinet, with significant cash deposits, shares in multiple companies, and land holdings that exceeded legal limits.

In defense of his wealth accumulation, Gurung stated on social media that being born into poverty is not a fault, but remaining poor is. He remarked, "Being born poor is not your fault; however, dying poor is. Earning wealth without corruption before entering government is not a sin; earning through corruption after joining is a sin."

Following this, doubts arose regarding the origins of his wealth, particularly after it was revealed that he had invested in a micro-insurance firm associated with the controversial businessman Bhatta, intensifying concerns about his financial dealings.

Gurung was elected to the House of Representatives from the Gorkha-1 constituency in western Nepal.