Nepal’s home minister Sudan Gurung resigned on Wednesday following mounting controversy over his alleged financial links to businesses associated with individuals under investigation for money laundering, marking the second high-profile exit from the country’s new Cabinet within a month.
Mr Gurung announced his resignation in a social media post, saying he was stepping down to ensure an impartial probe into the allegations and to avoid any conflict of interest.
“I am resigning from the position of home minister effective today to ensure impartial investigation into matters associated with me, and to make sure that there is no conflict of interest,” he says, adding, “For me, ethics is greater than position, and there is no power greater than public trust.”
The controversy centres around Mr Gurung’s alleged business links with controversial figures, including Deepak Bhatta, who is currently in police custody in connection with money laundering charges, and Sulav Agrawal, who is also under investigation, according to a report by Nepali Times (
https://nepalitimes.com/news/home-minister-sudan-gurung-resigns).
Questions were raised after disclosures showed Mr Gurung had invested in micro-insurance firms such as Star Micro Insurance and Liberty Micro Life, which were reportedly promoted by Mr Bhatta and Mr Agrawal. The investments came under scrutiny as details of his financial holdings emerged following a public declaration of assets.
Earlier this month, Mr Gurung was found to be among the wealthiest ministers in the Cabinet, with significant cash deposits, shareholdings and land assets reportedly exceeding legal limits. He had defended his wealth on social media, stating that earning wealth before entering public office was not wrong, but corruption after assuming office was unacceptable.
Mr Gurung denied any wrongdoing, maintaining that his investments were transparently declared and that concerns stemmed from how his shareholdings were categorised.
The development comes amid increasing pressure from within the ruling Rastriya Swatantra Party (RSP), which has positioned itself on a platform of clean governance and transparency. Party leaders had reportedly called for an internal inquiry as the controversy intensified.
Prime minister (PM) Balendra Shah had sought clarification from Mr Gurung after fresh details of his financial interests surfaced. Following his resignation, the prime minister is expected to temporarily hold charge of the home ministry, according to reports.
Mr Gurung’s exit marks the second ministerial departure since the new government was formed on 27 March 2026 after the elections earlier that month. On 9 April 2026, labour minister Deepak Kumar Sah was removed from office over allegations of misusing his position to retain his wife on a government board.
Mr Gurung, a prominent face of Nepal’s youth-led Gen-Z movement that gained momentum after the September protests, has enjoyed significant public support despite the controversies. Social media reactions to his resignation suggest that a section of the public views the move as a result of media pressure rather than proven misconduct.
However, the episode poses an early challenge for the new government, which came to power with a strong mandate to tackle corruption and improve governance standards.
With Mr Gurung stepping down and investigations ongoing, attention will now turn to how the government manages internal political dynamics and whether the controversy will have a lasting impact on his political career.
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