Home Minister Gurung under mounting pressure to resign over shareholding controversy

Minister Gurung dismisses allegations as “sponsored rumours”

KATHMANDU, April 21: Home Minister Sudan Gurung is facing intensifying political and public pressure to step down after revelations that he holds shares in companies linked to controversial businessman Deepak Bhatt, who was recently arrested in a money laundering case.

The controversy deepened on Monday as the main opposition Nepali Congress (NC), along with other political parties and civil society groups, called for an independent investigation and raised concerns over Gurung’s continued tenure in office.

Issuing a press statement, NC Spokesperson Devaraj Chalise said the party maintains that questions regarding ministers’ assets must be addressed through credible, evidence-based investigations. “Transparency and accountability are fundamental pillars of democracy. Therefore, a reliable, impartial and fact-based investigation into such matters is indispensable,” the statement read.

Referring to recent developments, the NC said the issue has triggered serious public concern and raised questions about political ethics and transparency. It warned that Gurung’s continuation in office could cast doubt on the integrity of the investigation process and potentially allow direct or indirect influence.

The party urged the government to immediately initiate an independent, high-level probe, cautioning that any delay or interference would undermine good governance and erode public trust.

Echoing similar concerns, Rastriya Prajatantra Party (RPP) Chair Rajendra Lingden demanded that the government clarify Gurung’s alleged links with Bhatt.

Speaking at a party programme in the capital, Lingden said both the government and the ruling Rastriya Swatantra Party (RSP) must clearly state their position following the emergence of documents showing Gurung’s shareholding in Star Micro Insurance, a company linked to Bhatt.

“The government must immediately make its position clear. The home minister should clarify his position, and the party leadership must also state its stance,” he said, adding that a government committed to good governance cannot remain silent on such serious allegations.

Meanwhile, GenZ Red Force Nepal also called for Gurung’s resignation on moral grounds, arguing that his continued presence in office could erode public trust and compromise the integrity of the investigation.

The controversy surfaced after documents made public on Sunday showed that Gurung holds shares in his own name in Star Micro Insurance and Liberty Micro Insurance—companies associated with Bhatt and currently under investigation following his arrest.

As the issue gained traction, voices within the ruling RSP have reportedly begun calling for Gurung’s resignation, citing concerns over a potential conflict of interest.

Amid mounting pressure, Gurung met RSP Chair Rabi Lamichhane at his residence in Budhanilkantha on Sunday night. According to sources, he arrived after 8:00 PM and stayed for nearly two hours. No other party leaders were present during the meeting.

Sources said Gurung attempted to ease pressure by facilitating a phone conversation between Prime Minister Balendra Shah and Lamichhane. However, Lamichhane reportedly asked him to present his position at a formal party meeting.

Prime Minister Shah held a separate meeting with RSP leaders late Monday evening as calls for Gurung’s resignation intensified.

Responding to the allegations, Gurung issued a detailed clarification, rejecting claims that he had concealed financial information. He said his total investment in the securities market exceeds Rs 20 million and that all details are available in official records. “I would not hide Rs 2.5 million worth of shares when my total declared assets exceed Rs 20 million. This is simply a matter of classification,” he said.

Gurung also maintained that the shares in question including those in Star Micro Insurance and Liberty Micro Insurance were acquired before he assumed office and were part of his declared portfolio. He also argued that being a shareholder does not imply direct association with all individuals linked to a company.

Addressing concerns over a potential conflict of interest, he said the investigation into Bhatt is being carried out by the Department of Money Laundering Investigation under the Ministry of Finance, not the Home Ministry.

Separately, Gurung dismissed the allegations and media reports linked to him as “sponsored rumours.” In a statement posted on social media on Monday evening, he claimed that corrupt individuals unsettled by ongoing action against them are deliberately spreading misinformation.

He asserted that action against those accused of embezzling state funds would continue unabated. “Those who have long set their sights on the nation’s treasury—built on the sweat and toil of the people—are now fearful,” he wrote. “Media trials and sponsored rumours are nothing more than a reflection of their desperation.”

Expressing dissatisfaction over what he described as a coordinated campaign against him, Gurung said, “The action will neither stop nor falter,” adding that he had not seen comparable efforts to pursue individuals allegedly involved in large-scale corruption.

However, discrepancies between Gurung’s clarification and his official asset declaration have raised further questions. While he claimed that his investments were made through a bank loan, the loan section in his asset declaration submitted to the Office of the Prime Minister and Council of Ministers remains blank.

Moreover, investments worth Rs 2.5 million each in Star Micro Insurance and Liberty Micro Insurance—where Gurung is listed as a founding shareholder—were not disclosed separately. Instead, he said they were included within a broader figure of Rs 27.45 million listed under shares traded in the securities market.

Critics have also pointed out that these companies have not yet begun public trading, raising questions about how such shares were categorised in the declaration.

As scrutiny intensifies, the controversy has evolved into a broader test of the government’s commitment to transparency and accountability. Opposition parties, civil society groups and sections within the ruling coalition have indicated that Gurung stepping down may be necessary to ensure an impartial investigation.

With pressure mounting and questions lingering over asset disclosures and potential conflict of interest, the next few days are likely to be crucial in determining Gurung’s political future.