Daijiworld Media Network - Kathmandu
Kathmandu, Apr 22: Nepal’s Home Minister Sudhan Gurung resigned on Wednesday after allegations linked him to shareholdings in firms associated with a businessman under investigation in a money laundering case.
Gurung, who rose to prominence following the Gen Z protests and was elected from Gorkha on March 5, submitted his resignation to Prime Minister Balendra Shah (Balen), saying public trust and morality were above holding office.
Announcing the decision on social media, Gurung said stepping down would ensure a fair investigation and eliminate any conflict of interest.
“For me, morality is greater than position, and there is no greater power than public trust,” he said, adding that the growing Gen Z movement demanding transparency and accountability had sent a clear message that leadership must remain clean and responsible.
He said his resignation was intended to uphold those principles and ensure the probe was not influenced in any way.
The controversy erupted after documents surfaced showing Gurung held shares in Star Micro Insurance and Liberty Micro Insurance, firms allegedly linked to businessman Deepak Bhatt, who was recently arrested in a money laundering investigation.
The revelations triggered criticism and calls for his resignation, including from within the ruling Rastriya Swatantra Party (RSP).
Gurung had denied wrongdoing, saying his investments, exceeding NRs 20 million, were fully declared and that the shares were acquired before he assumed office. He argued that being a shareholder did not imply involvement with all individuals associated with a company.
He also maintained that the probe against Bhatt was being handled by the Department of Money Laundering Investigation under the Finance Ministry, and not by the Home Ministry.
Dismissing the allegations as “sponsored rumours”, Gurung claimed they were being spread by those targeted in anti-corruption actions.
However, scrutiny intensified over alleged discrepancies in his asset declarations, including shares reportedly worth around NRs 2.5 million each in the two firms that were not separately disclosed.
With pressure mounting, Gurung stepped down, saying the move was necessary to preserve transparency, accountability and public confidence.