Nepal’s Home Minister Sudhan Gurung resigned after allegations emerged linking him to share transactions with a controversial businessman under investigation for money laundering, on Wednesday. Gurung rose to prominence after the Gen-Z protests in September, winning from Gorkha in the March 5 elections and entering parliament before becoming home minister.
He submitted his resignation to Prime Minister Balendra Shah and also announced his decision on social media.
“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,” Sudhan wrote on Facebook.
“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,”he further added.
Gurung drew attention for taking action against senior officials, including ordering arrests. But in recent times, he had faced mounting criticism.
Pressure had been building on him to resign after reports emerged that he holds shares in companies linked to controversial businessman Deepak Bhatt, who was recently arrested in a money laundering case.
The controversy surfaced after documents made public on Sunday showed that Gurung holds shares in his own name in Star Micro Insurance and Liberty Micro Insurance, companies associated with Bhatt and currently under investigation following his arrest.
As the issue gained momentum, voices within the ruling RSP have reportedly begun calling for Gurung’s resignation, citing concerns over a potential conflict of interest.
Responding to the allegations, Gurung had issued detailed clarification twice, rejecting claims that he had concealed financial information. He said his total investment in the securities market exceeds NRs 20 million and that all details are 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 simply a matter of classification,” he said.
Gurung also had maintained that the shares in question, including those in Star Micro Insurance and Liberty Micro Insurance, were acquired before he assumed office and were part of his declared portfolio. He also argued that being a shareholder does not imply direct association with all individuals linked to a company.
Addressing concerns over a possible conflict of interest, he said that the investigation into Bhatt is being handled by the Department of Money Laundering Investigation under the Ministry of Finance, not the Home Ministry.
Separately, Gurung dismissed the allegations and media reports about him as “sponsored rumours.”
In a social media post on Monday evening, he said corrupt individuals unsettled by the crackdown against them were deliberately spreading misinformation.
He stressed that action against those accused of embezzling state funds would continue unabated. “Those who have long set their sights on the nation’s treasury- built on the sweat and toil of the people- are now fearful,” he wrote. “Media trials and sponsored rumours are nothing more than a reflection of their desperation.”
Expressing dissatisfaction over what he described as a coordinated campaign against him, Gurung said, “The action will neither stop nor falter,” adding that he had not seen comparable efforts to pursue individuals allegedly involved in large-scale corruption.
Gurung said his investments were made through a bank loan, but 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.
Similarly, his investments of NRs 2.5 million each in Star Micro Insurance and Liberty Micro Insurance, where he is a founding shareholder, were not listed separately. Instead, he said they were included in a broader figure of NRs 27.45 million under shares traded in the securities market.
It was later revealed that the companies had not yet begun public trading, raising questions about how those shares were classified in the declaration.
(with ANI inputs)
