Nepal Home Minister Resigns Amid Financial Misconduct Probe, PM Shah Takes Over Portfolio

Nepal Home Minister Sudan Gurung has resigned amid allegations of financial misconduct , triggering a major political development in the country’s new government. His resignation has been formally accepted by the Prime Minister’s Office , with Prime Minister Balendra Shah taking over the Home Ministry portfolio on an interim basis .

Gurung, appointed on March 27, stepped down following intensified scrutiny over his alleged business links and share transactions with businessmen reportedly under investigation for money laundering, including Deepak Bhatta. According to multiple reports, questions were also raised over his investment disclosures and financial associations with firms linked to controversial entities.

In his resignation statement posted on social media, Gurung said he was stepping down to ensure an impartial investigation and to avoid any conflict of interest while in office. He stressed that ethics, transparency, and public trust were more important than holding power, adding that public life must remain accountable.

He also referenced the ongoing Gen Z movement , which emerged after the 2025 protests that reshaped Nepal’s political landscape, saying it reinforced demands for clean governance and accountability.

Government sources confirmed that the Prime Minister will temporarily oversee the Home Ministry until a new appointment is made. Officials also indicated that the resignation comes amid a broader anti-corruption review process , including a government-formed panel probing assets of public officials.

Gurung, a prominent figure in the Gen Z movement and member of the Rastriya Swatantra Party (RSP), had been active in recent political negotiations and reform-linked initiatives within the new administration.