Nepal's Home Minister Resigns Amid Financial Controversy: What Led to His Decision?

Sudan Gurung, Nepal's Home Minister, has stepped down amid allegations of financial misconduct linked to businessman Deepak Bhatta, who is currently in police custody for money laundering. Gurung's resignation, announced via social media, aims to ensure an impartial investigation into his affairs. This marks the second ministerial resignation in a month under Prime Minister Balendra Shah's government, which was formed to combat corruption. Gurung's wealth disclosures have raised eyebrows, particularly his ties to Bhatta's micro-insurance company. His statement on ethics and public trust adds a layer of complexity to the unfolding situation. Read on to discover more about this developing story.

By Narendra Chaudhary Apr 22, 2026, 18:39 IST

Resignation of Home Minister Sudan Gurung

Kathmandu: Sudan Gurung, Nepal's Home Minister and a key figure in the Gen-Z movement last September, announced his resignation on Wednesday amid allegations concerning his financial activities.

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

In a social media statement, Gurung expressed, "To facilitate an unbiased investigation regarding my affairs and to prevent any potential conflict of interest, I have decided to resign from my role as Home Minister, effective immediately. For me, ethics surpass position, and public trust is paramount."

His resignation marks the second departure from the Cabinet within a month of the new government, led by Prime Minister Balendra Shah, which was established on March 27 following 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 accused of misusing his position to keep his wife, Junu Shrestha, on the Health Insurance Board, a role that had been largely inactive.

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

On April 12, alongside Prime Minister Shah and other ministers, Gurung revealed his asset details, which indicated he was among the wealthiest in the Cabinet, possessing significant cash deposits, shares in various 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 personal failing, but dying in poverty is. He remarked on Instagram, "Being born poor is not your fault; however, if you die poor, that is your fault. Earning wealth without corruption before entering government is not a sin; profiting through corruption after joining is."

This led to further inquiries regarding the origins of his wealth, revealing investments 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.