Nepal’s Home Minister Sudan Gurung, who led GenZ protests, resigns over corruption allegations

Cracks are emerging in the newly elected government in Nepal. Home Minister Sudan Gurung has resigned amidst mounting criticism over corruption allegations. Resigning just weeks after taking the oath as Nepal’s Home Minister, Gurung said that he wants to ensure a fair probe into the alleged questionable financial transactions.

 “I have resigned from the position of Home Minister with effect from today. For me, ethics is greater than position, and there is no greater force than public trust. The ongoing Gen Z movement in the country, which is demanding good governance, transparency and accountability, has also conveyed this message—that public life must be clean and leadership must be accountable. If anyone questions the government formed on the blood and sacrifice of my 46 brothers and sisters, the answer to that is ethics,” the 38-year-old politician wrote on social media.

The Nepali Prime Minister’s Office confirmed receiving Gurung’s resignation letter.

Sudan Gurung’s resignation came just weeks after Deepak Kumar Sah, Minister for Labour, Employment and Social Security, was dismissed by PM Balen Shah over alleged undue favour to his wife. The action was taken after the internal disciplinary body of Rastriya Swatantra Party found that he allegedly facilitated the appointment of his wife to an inactive Health Insurance Board role, breaching ministerial ethics and party principles.

Corruption allegations against Sudan Gurung

According to a Kathmandu Post report, suspicious transactions occurred between the companies of Home Minister Sudan Gurung and businessman Deepak Kumar Bhatt. Gurung purchased 25,000 shares each in two of Gurung’s companies, Liberty Micro Life Insurance and Star Micro Insurance. These companies belong to Deepak Bhatt and the Jagdamba Group. Moreover, various individuals deposited significant amounts of money into his account from time to time. According to the report, in 2024, Sanjay Services Centre Private Limited deposited ₹1 million, followed by ₹1.25 crore.

Bijay Kumar Shrestha, who deposited 3.7 million rupees into Sudan’s account, has not yet been identified. Following controversy over the source of the funds used to purchase shares in Liberty Micro Life Insurance and Star Micro Insurance, Home Minister Gurung has claimed that he acquired the shares through loans.

Sudan Gurung, however, has strongly denied the allegations. According to a report in The Himalayan Times, Gurung has admitted to investing in two companies. Regarding allegations of concealing assets, he maintains that he publicly disclosed investments worth more than ₹2 crore (approximately $20 million).

Sudan Gurung was a key leader during the Gen Z protests in November 2025

Notably, alongside now Prime Minister Balen Shah, Sudan Gurung, the founder of Hami Nepal, played a prominent role in organising the GenZ protests that ousted the KP Sharma Oli-led communist government, rallying under-28 youth nationwide last year. On Instagram, he posted “How to Protest” videos, advocating “peaceful” resistance while also suggesting aggression if necessary. OpIndia had highlighted Hami Nepal’s foreign funding last year.

Protest placards carried Hami Nepal’s branding. The NGO used Discord groups to coordinate—circulating instructions, urging students to wear uniforms, and even sharing guides on making petrol bombs. Leaked chats revealed calls to flood international media with violent images and discussions of regime change modelled on Bangladesh.

Gurung’s NGO had acknowledged receiving 200 million Nepali rupees in funding from brands like Coca-Cola, Viber, Goldstar, and Mulberry Hotels—all foreign entities. Earlier in 2025, Hami Nepal stoked anti-India sentiment following the death of a Nepali student at an engineering college in Odisha, India.