Nepal’s home minister Sudhan Gurung under pressure to resign amid financial scrutiny

KATHMANDU — Home Minister Sudhan Gurung is facing growing calls to resign after reports surfaced linking him to businessmen currently under investigation for large‑scale financial crimes, including alleged money laundering connected to Himalayan Reinsurance. The scrutiny, amplified by coverage from HimalPress News, Facebook‑based reporting, and The Kathmandu Post, has triggered internal tensions within the ruling party.

Allegations tied to money laundering probe

The controversy centers on Gurung’s past financial association with Deepak Bhatt, a businessman detained in a major money laundering investigation. Bhatt has been accused of involvement in a multi‑billion‑rupee scheme involving Himalayan Reinsurance and other listed companies.

According to reports, both Gurung and Bhatt previously held shares in Star Micro Insurance Company, raising questions about potential undisclosed financial ties. Opposition leaders and some members of the ruling coalition have demanded a formal inquiry and urged Gurung to step aside until the investigation concludes.

Gurung denies wrongdoing

Home Minister Gurung has publicly rejected the allegations, stating that:

• His investments were made legally and are fully documented in his asset declarations.
• He has no operational or personal partnership with Bhatt or any other accused individuals.
• The controversy stems from misinterpretation of share records, not concealment or collusion.

Gurung maintains that he is willing to cooperate with any official review.

P backdrop: a series of scandals

The pressure on Gurung comes at a time when Nepal’s political landscape has been shaken by repeated financial scandals involving senior officials:

• In 2025–2026, former Home Minister Ravi Lamichhane faced intense public backlash over a Rs 109 million cooperative fraud case, prompting widespread protests and demands for his resignation.
• Another Home Minister, Ramesh Lekhak, resigned in September 2025 following escalating demonstrations linked to governance failures and public distrust.
• Investigations into cooperative embezzlement, stock market manipulation, and alleged irregularities involving Nepal Reinsurance Company have contributed to ongoing instability.

growing pressure within the ruling party

Sources within the ruling alliance say several leaders are urging Gurung to step down to prevent further damage to the government’s credibility. While no official decision has been announced, the mounting scrutiny has placed the Home Minister in a politically vulnerable position.

what happens next

The government has not yet formed a special committee to examine Gurung’s financial disclosures, but political analysts note that the situation could escalate quickly if new evidence emerges or public pressure intensifies.

For now, Gurung continues to hold office, but the debate over his future has become a central issue in Kathmandu’s political circles.