Why Nepal Home Minister Sudhan Gurung Has Resigned A Month After New Govt Took Over

Last Updated:April 23, 2026, 09:52 IST

Gurung announced his resignation on Facebook, saying that “ethics and morality are more important than any position” and that there was “nothing more important than public trust.”

Nepal Home Minister Sudhan Gurung resigned on Wednesday, April 22, just a month after the new government led by Prime Minister Balendra Shah took office. His resignation comes amid a fast‑spreading controversy over his financial dealings and alleged links to a businessman under money‑laundering investigation.

Who is Sudhan Gurung?

Sudhan Gurung, a 38‑year‑old politician, rose to prominence as a key figure in the youth‑led “Gen‑Z" protests that helped push Nepal’s previous government out in 2025. He was elected from Gorkha in the March 2026 elections and immediately made Home Minister in the new Rastriya Swatantra Party (RSP)‑led cabinet, giving him control over internal security, police, and anti‑crime efforts.

What Triggered The Controversy?

Leaks and investigative reports revealed that Gurung holds shares in at least two micro insurance companies, Star Micro Insurance and Liberty Micro Insurance, whose chairman, Deepak Bhatta, is under probe for alleged money laundering. Financial records also showed that Gurung’s personal account received around Nepali Rs 60 lakh (about Rs 37.5 lakh) in 2021 as Covid‑19 relief donations, part of which was later transferred to a social‑welfare organisation named Hami Nepal, raising questions about accounting and transparency.

Opposition parties, watchdog groups, and even members within his own party argued that these business links and incomplete asset disclosures created a conflict of interest for a Home Minister who is supposed to be leading anti‑corruption and financial‑crime enforcement.

Why Has Sudhan Gurung Resigned Now?

Under mounting pressure, Gurung announced his resignation on Facebook, saying that “ethics and morality are more important than any position" and that there was “nothing more important than public trust." He stated that stepping down would allow an independent and fair investigation into the allegations surrounding his shareholdings and financial statements.

In his resignation note, he also pushed back, arguing that he has always disclosed his investments to the authorities and that the scrutiny is partly a co‑ordinated effort to damage his image by those who feel threatened by aggressive anti‑corruption actions.

Gurung’s resignation is a major early setback for Prime Minister Balendra Shah’s young government, which came to power on promises of clean governance, technocratic reform, and youth‑driven politics. The fact that the Home Minister, known to be the guardian of rule of law, has stepped down over financial‑dealing questions within a month of taking office has already become a symbol of the fragility of anti‑corruption narratives in practice.

For now, PM Shah has retained the Home Ministry portfolio himself, underscoring the sensitivity of the position and the need to stabilise the government’s image as investigators begin to examine the exact nature of Gurung’s business ties and disclosures.

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