Kathmandu, April 22 — Nepal’s Home Minister Sudhan Gurung has resigned amid allegations linking him to shareholdings tied to a businessman under investigation for money laundering.
Gurung, who rose to national prominence after the Gen-Z protests last September and won the Gorkha seat in the March 5 elections, was named Home Minister by Prime Minister Balendra Shah when the new cabinet was formed. He submitted his resignation to the prime minister on Wednesday and announced the decision on social media.
In his public statement, Gurung said he had served honestly since Chaitra 13, 2082, and that public trust and morality outweigh holding office. He said the Gen Z movement’s demand for transparency and accountability reinforced the need for clean public life and responsible leadership. To ensure a fair investigation into matters concerning him and to avoid any perception of conflict of interest while in office, he said he was stepping down immediately.
The controversy intensified after documents released on Sunday indicated Gurung held shares in Star Micro Insurance and Liberty Micro Insurance, companies linked to businessman Deepak Bhatt, who was recently arrested in a money laundering case. Those revelations prompted criticism and reports that voices within the ruling RSP had urged Gurung to resign, citing a potential conflict of interest.
Gurung issued two detailed clarifications denying that he concealed financial information. He said his total investment in the securities market exceeds NRs 20 million and that his holdings are recorded in official disclosures. He stated he would not hide NRs 2.5 million worth of shares given his broader declared portfolio, describing the matter as one of classification. According to him, the disputed shares were acquired before he assumed ministerial office and were included in a larger NRs 27.45 million figure listed under securities in his declaration.
He also argued that being a shareholder does not automatically imply direct association with every individual connected to a company, and pointed out that the investigation into Bhatt is being handled by the Department of Money Laundering Investigation under the Finance Ministry, not the Home Ministry. Gurung dismissed some reports as ‘sponsored rumours’, attributing them to those targeted by his earlier actions against alleged corrupt officials.
The resignation follows a period in which Gurung had been active in taking action against high-ranking figures and had faced growing scrutiny. He acknowledged that some investments were made with a bank loan but did not disclose loan details in the asset declaration recently published by the Office of the Prime Minister and Council of Ministers. Questions were also raised because the insurance firms in question had not yet begun public trading, prompting queries about classification in the declaration.
Gurung said his step was intended to keep the investigation impartial and to remove any suggestion that his ministerial position could affect proceedings. (This report is sourced from a syndicated feed.)
