Key Points
Nepal Home Minister Sudhan Gurung resigned amid allegations of financial irregularities and links to a businessman under investigation for money laundering
The controversy centres on suspected shareholdings, questionable fund transfers, and concerns over conflict of interest in public office
His resignation adds pressure on Prime Minister Balendra Shah’s government, marking the second ministerial exit within a month of taking power
Nepal’s newly appointed Home Minister Sudhan Gurung has announced his resignation from his post on Wednesday, 22nd April 2026. His resignation comes amidst a rampant controversy which has ensnared the Gen Z leader, with allegations against him of engaging in dubious financial dealings and covert links with a businessman.
This comes just a mere month after Prime Minister Balendra Shah’s government took charge of the Nepalese administration.
These past days, leaks and investigation reports have been coming forth linking Gurung with disgraced businessman Deepak Bhatta, chairman of the micro-insurences companies Star Micro Insurance and Liberty Micro Insurance. Bhatta is under probe over an alleged money-laundering case. According to the reports, Gurung purportedly holds shares in Bhatta's companies.
Further casting the doubt cloud over him are the financial records that raise questions about transparency and accountability. Gurung’s bank account received around Nepali Rs 60 lakhs (about 37.5 lakhs in Indian rupees) during the covid-19 pandemic as relief donations in 2021, however, a part of funds were transactioned to a social-welfare organization called ‘Hami Nepal’ founded by Gurung himself.
See also: Nepal govt to probe assets of political leaders
Announcing his resignation on Facebook, Gurung wrote: "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. 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."
Calling ethics greater than position, Gurung remarked that ‘there is no greater power than public trust.’
"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,” the post further read.
"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 added.
The allegations and controversy have caused uproar amongst opposition and his own party (Rastriya Swatantra Party, abbreviated as RSP) members alike. For someone who is supposed to utilize the power bequeathed to him for leading anti-corruption and financial-crime enforcement, these alleged business links and incorrect assets disclosure have placed Gurung in major conflict of interest, they argue.
See also: Nepal’s ex-Energy Minister Deepak Khadka arrested over money laundering charges
Dubbed as the ‘Homie Minister’ by the Gen Z owing to his shy and down-to-earth persona, the 38-year-old emerged as a prominent leader in the 2025 youth-led protest that toppled the erstwhile dictatorial government of Nepal. In March of 2026, he was elected from Nepal’s Gorkha constituency and was given the position of Home Minister under the RSP‑led cabinet, helmed by Prime Minister Balendra Shah. As the Home Minister, Gurung was given charge over the state’s internal security, police, and anti‑crime efforts.
Notably, after assuming the position, he ordered the arrest of the former Nepalese Prime Minister K.P. Sharma Oli and his Home Minister Ramesh Lehkhak, in relation to the government-mandated crackdown during the 2025 protests.
Gurung’s resignation marks the second departure of a minister from the Prime Minister's cabinet. Earlier this month, Balendra Shah dismissed his Labour Minister Dipak Kumar Sah after he was held accountable for ‘misusing the dignity of his position.’ Per a report of The Kathmandu Post Sah to get his wife onboard the board of directors of the Health Insurance Board.
For now, the Home Minister position has been retained by Prime Minister Balendra Shah himself.
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