New Delhi: Nepal’s Home Minister Sudhan Gurung, a key member of the new Rastriya Swatantra Party (RSP)-led government of Prime Minister Balendra Shah sworn in on March 27, has resigned. He announced his decision on Facebook on Wednesday (April 22), following allegations of improper conduct through holding business links with Deepak Bhatta, an alleged money launderer now under the investigative net, and concealing those connections.“…with the aim of ensuring that there is a fair investigation into matters related to me and that there is no conflict of interest while holding office and that it is not affected in any way, I have resigned from the position of Home Minister, effective today,” Gurung wrote on Facebook.The RSP has written to the Prime Minister, deciding to recall Gurung from the post.Gurung, considered the face of the anti-government protests in Nepal in 2025, earlier denied the allegations against him. On April 20, he assured the public he would cooperate in any probe related to his dealings with Bhatta, who was arrested in Nepal on April 2.The specific charge against Gurgung reported in the Nepali press is that he concealed a Rs 2.5 million investment in Star Micro Insurance Company Limited, which, Kathmandu Post reports, includes capital linked to Bhatta and the Shankar Group, both under investigation in the country.The allegations against him first surfaced on Sunday via reports in Diyopost, an online news platform based in Nepal.Gurung allegedly purchased shares in Star Micro Insurance, where he is reportedly listed as a stakeholder alongside Bhatta. The company, though licenced in 2022, has yet to launch an initial public offering and includes other firms associated with Bhatta among its investors.Days after assuring cooperation and denying wrongdoing, Gurung decided to resign Wednesday, becoming the second high-profile member of the so-called Gen-Z movement as well as the Shah government to do so. He cited moral grounds as the reason for his decision.“To ensure an impartial investigation into matters related to me and to avoid any conflict of interest while in office or any impact on the process, I have resigned from the post of Home Minister, effective from today,” he wrote on Facebook.Gurung has clarified that his declared investments of over Rs 20 million in shares traded on the securities market included his investments in Star Micro Insurance and Liberty Micro. “This is not concealment, but a matter of classification,” he said. He also said that the funds he raised to purchase these shares were through official bank loans and other recorded transactions.Prime Minister Shah will take over the Home portfolio for now, reports said.Businessman Bhatta is understood to be close to the administration of the previous K.P. Singh Oli government and its members.Protests erupted over Gurung’s alleged links as well as a controversial recent decision of the Shah government to impose customs duty on all purchases valued over Rs 100 from India, with the rate of application varying from 5 to 80%. The move has reportedly caused significant hardship to Nepali citizens who rely on cheaper Indian items for everyday needs and impacted Indian border towns that depend on their custom.In his post announcing the resignation, Gurung said, “There is morality greater than position, and no power greater than public belief,” adding that he had taken seriously the concerns raised by citizens regarding his investments, including shares.He also challenged journalists, whose names are said to feature in the same list of shareholders. He said he values and believes in those principles, and his resignation was proof of that.Earlier on APril 9, the labour minister Deepak Kumar Sah in the Shah Cabinet was sacked following allegations of nepotism related to appointing his wife on a health board that had lain dormant during the previous administration. He had left the post writing a cryptic one-word Facebook post, “Spashtikaran – clarification”.Kathmandu Post notes that the two sudden resignations prompted demands within the ruling party for a fair investigation. Major opposition parties, including the Nepali Congress, CPN-UML and the Shram Sanskriti Party had also formally called for Sudan’s resignation and demanded an independent investigation.The RSP won 182 seats and around 60% of the popular vote in the elections held earlier this year.