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Nepal’s Home Minister Sudhan Gurung resigned on Wednesday over alleged financial ties to a businessman under investigation for money laundering, marking an early setback for the country's month-old government.
Gurung, who took office just four weeks ago after a youth-led uprising swept Prime Minister Balendra Shah to power, stepped down amid mounting public pressure over his shares in two micro-insurance companies linked to controversial power broker Deepak Bhatta.
In a statement posted to Facebook, Gurung said he was stepping aside to ensure an "impartial investigation" and to prevent any perceived conflict of interest. However, he dismissed the allegations as "sponsored rumors" orchestrated by critics fearful of his anti-corruption initiatives.
The resignation follows reports highlighting discrepancies in Gurung’s recent asset declaration. While the minister claimed his business investments were financed by a bank loan, the liability was reportedly missing from official records submitted to the prime minister’s office.
A former DJ who founded a non-governmental organization following Nepal's 2015 earthquake, Gurung rose to national prominence as a volunteer distributing water during the September 2025 Gen Z protests. He quickly became a key figure in the movement that toppled the political establishment, formally joining the Rastriya Swatantra Party (RSP) in January 2026.
His departure makes him the second cabinet member to exit Shah's young administration in quick succession, following the recent dismissal of Labor Minister Deepak Kumar Sah over party discipline breaches.
Prime Minister Shah will oversee the Ministry of Home Affairs portfolio in the interim.
