Nepal Home Minister Sudhan Gurung resigned on Wednesday after allegations over his shareholdings in firms associated with businessman Deepak Bhatt, who was recently arrested for money laundering.
Gurung was a prominent figure during the Gen Z protests and was elected from Gorkha on March 5. He submitted his resignation to Prime Minister Balendra Shah on Wednesday. He announced the move on Facebook, stating public trust and morality outweighed holding office, and that stepping down would ensure a fair investigation without conflicts of interest.
“I, Sudan Gurung, have been working honestly in the capacity of Minister of Home Affairs since Chaitra 13, 2082. In recent days, I have taken seriously the questions, comments, and public interest raised by citizens on issues, including my share. For me, morality is greater than position, and there is no greater power than public trust. The Gen Z movement that is rising in the country today, demanding good governance, transparency, and accountability, has also given the same message: public life should be clean, and leadership should be responsible. If anyone questions the government that was formed on the basis of the blood and sacrifice of my 46 brothers and sisters, the answer is morality,” he wrote.
Gurung added, “Therefore, with the aim of ensuring that there is a fair investigation into matters related to me and that there is no conflict of interest while holding office and that it is not affected in any way, I have resigned from the position of Home Minister, effective today.”
Gurung became the subject of controversy after documents revealed his shares in Star Micro Insurance and Liberty Micro Insurance, companies linked to Deepak Bhatt, who is currently being investigated for money laundering. This led to calls for his resignation, including from within the ruling RSP.
Gurung initially denied wrongdoing, stating his total investments exceeded NRs 20 million and were fully declared. He insisted the shares were acquired before assuming office and argued being a shareholder did not imply direct involvement with individuals linked to the company. He also reinforced that Bhatt’s investigation was being handled under the Finance Ministry and not the Home Ministry. He called the allegations “sponsored rumours” and claimed they were being spread by individuals targeted in anti-corruption actions. However, discrepancies were found in his asset declarations, including the classification of shares worth around NRs 2.5 million each in both firms, which were not separately disclosed and had not yet begun public trading.
