Criticism against him grew in recent weeks after reports linked him to companies tied to businessman Deepak Bhatt, who was recently arrested in a money laundering case…reports Asian Lite News
Nepal’s Home Minister Sudhan Gurung resigned on Wednesday after mounting pressure over allegations linking him to shareholdings in companies connected to a businessman under investigation for money laundering.
Gurung, who emerged as a prominent figure following the Gen Z protests in September and later won the March 5 elections from Gorkha, submitted his resignation to Prime Minister Balendra Shah, popularly known as Balen. He also announced his decision publicly through a post on social media.
In his statement, Gurung said he had served honestly as Home Minister since assuming office and stressed that public trust and morality were more important than political power.
“For me, morality is greater than position, and there is no greater power than public trust,” he wrote, adding that the ongoing youth driven movement demanding transparency, accountability and good governance had reinforced the need for clean public life and responsible leadership.
He said he was stepping down to ensure a fair investigation into allegations linked to him and to avoid any possible conflict of interest while remaining in office.
Prime Minister Shah had appointed Gurung as Home Minister on the same day he took office.
Gurung initially gained public attention for taking strong action against senior officials and launching anti corruption measures. However, criticism against him intensified in recent weeks after reports surfaced linking him to companies associated with businessman Deepak Bhatt, who was recently arrested in a money laundering investigation.
Documents made public earlier this week showed that Gurung owned shares in Star Micro Insurance and Liberty Micro Insurance, firms reportedly linked to Bhatt and currently under scrutiny following his arrest.
The revelations triggered growing pressure within the ruling RSP, with some party members reportedly demanding his resignation over concerns of a possible conflict of interest.
Gurung repeatedly denied any wrongdoing and issued detailed clarifications defending his financial disclosures. He maintained that his investments, including the disputed shares, were purchased before he entered office and were part of his declared assets.
“My total investment in the securities market exceeds NRs 20 million. I would not hide NRs 2.5 million worth of shares when my declared assets exceed NRs 20 million,” he said, insisting the issue was merely related to how the investments had been classified.
He also argued that holding shares in a company did not imply direct ties with every individual associated with it.
Addressing concerns about conflict of interest, Gurung noted that the investigation into Bhatt was being conducted by the Department of Money Laundering Investigation under the Finance Ministry, not the Home Ministry.
Earlier this week, Gurung had dismissed allegations against him as “sponsored rumours”, accusing corrupt groups threatened by his actions of orchestrating a campaign to discredit him.
Questions also emerged over Gurung’s asset declaration after it was revealed that the investments were reportedly financed through a bank loan that had not been separately disclosed. His stakes in the two insurance firms, valued at NRs 2.5 million each, were also not individually listed and instead appeared under a broader category of securities market investments worth NRs 27.45 million.
Further scrutiny followed after reports suggested the companies had not yet begun public trading, raising doubts over how the shares were classified in the declaration.
