Nepal Home Minister Sudhan Gurung Resigns Over Conflict Of Interest Charges

Nepal’s Home Minister Sudhan Gurung has resigned on Wednesday after allegations linked him to shareholdings in firms associated with a businessman under investigation for money laundering.

Gurung, who emerged as a prominent face following the Gen Z protests and was elected from Gorkha on March 5, submitted his resignation to Prime Minister Balendra Shah (Balen) on Wednesday. Announcing the move on social media, he said public trust and morality outweighed holding office, and that stepping down would ensure a fair probe without any conflict 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,” Sudhan wrote on Facebook.

Further adding, “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.”

The controversy erupted after documents revealed that 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. The disclosures triggered criticism and calls for his resignation, including from within the ruling RSP.

Gurung had earlier denied any wrongdoing, stating that his total investments exceeded NRs 20 million and were fully declared. He maintained that the shares in question were acquired before he assumed office and argued that being a shareholder did not imply direct involvement with all individuals connected to a company. He also stressed that the investigation into Bhatt was being handled by the Department of Money Laundering Investigation under the Finance Ministry, not the Home Ministry.

He further dismissed the allegations as “sponsored rumours,” claiming they were being spread by individuals targeted in anti-corruption actions. However, questions persisted over discrepancies in his asset declarations, including the classification of shares worth around NRs 2.5 million each in the two firms, which were not separately disclosed and had not yet begun public trading.

Amid mounting pressure and scrutiny, Gurung stepped down, saying the decision was aimed at upholding transparency and accountability.