KATHMANDU, APRIL 20
Another minister has become embroiled in controversy less than a month after the formation of the Rastriya Swatantra Party-led government.
While one minister has already been fired and another has been warned, a new controversy has emerged over Home Minister Sudan Gurung's alleged involvement with a shady broker and businessman Deepak Bhatta, who is in custody in a money laundering case.
While former labour minister Deepak Kumar Sah lost his portfolio, a warning has been issued to Health Minister Nisha Mehta. Now, Minister Gurung has been drawn into the eye of the storm before the dust could settle on the earlier controversies. Earlier, Gurung was also involved in the controversy surrounding the land dispute in Fewa Lake, but that matter was settled swiftly.
Minister Gurung had made headlines after making some high-profile arrests - including that of former prime minister KP Sharma Oli and former home minister Ramesh Lekhak - shortly after becoming the home minister. But it has now come to light that Minister Gurung is a shareholder in the company in which Bhatta is one of the partners.
Allegations have also been made that he failed to include in his asset statement the shares that he bought following the Gen Z movement.
Gurung is a partner in Star Micro Insurance Company Ltd, along with Bhatta and Sulav Agarwal, according to published documents. Agarwal is vice-chairman of Shanker Group and chairman of Jagdamba Holdings.
Gurung's name can be found in the insurance company's preliminary share register at number 49. He appears to have made an investment in the company by buying shares valued at Rs 2.5 million.
The insurance company, which was granted a licence in 2022, has not yet released its initial public offering (IPO), but appears to have investments from Bhatta's company Infinity Holdings and Agarwal's Jagdamba Holdings and Shanker Group.
Home Minister Gurung issued a clarification via social media today, claiming that he has done nothing wrong. He has stated that he will support the required investigation and accept the party's decision. "I am prepared to provide necessary assistance in the investigation and will fully comply with every decision the party makes on this matter," he stated.
Earlier this morning, Home Minister Gurung met RSP President Rabi Lamichhane. During the meeting, he reportedly addressed the concerns expressed about him.
However, the opposition party has called for Home Minister Gurung's resignation. Issuing a press release today, Nepali Congress called for Gurung to step down and asked the government to look into the matter.
"The Nepali Congress clearly demands that the government immediately launch an independent, impartial, and high-level investigation into all allegations against the home minister," the statement read. "Any attempt to postpone, sway or conceal this matter will gravely undermine ethics, public trust and good governance."
Rajendra Lingden, the chair of the Rastriya Prajatantra Party (RPP), has also called for an inquiry into Home Minister Gurung. Lingden, while speaking at a programme held here today, emphasised that the government and the RSP should provide clarification on this matter.
"The government should immediately clarify its position on what is currently being said in the media about the home minister, who discusses good governance," Lingden stated. "The home minister ought to clarify his stance. "The party chair should clarify his position on the home minister."
According to RSP Spokesperson Manish Jha, the matter of Home Minister Gurung is still being discussed.
After the RSP central committee meeting, Spokesperson Jha told mediapersons that no decision had been made about Home Minister Gurung. He stated that the home minister was not on the meeting's agenda for today.
Former minister Sah was recalled under the 'Right to Recall' provision, according to the RSP at the time. Jha, the party's spokesperson, was questioned on this. In response, he stated that the matter was still under discussion.
"The leader has authority over the right to recall. There was no agenda item proposed for today's meeting on this subject," Jha stated. "There are four steps to the process: Proposal, discussion, conclusion and decision. It is currently in the stages of proposal and discussion."
Sah's controversy stemmed from reappointment of his wife, Dr Junu Shrestha, to the Health Insurance Board, even though she had been removed from it earlier for protocol violation.
Dr Shrestha had joined the Health Insurance Board two years ago, but had travelled to the UK to pursue her studies without informing the board. Following his appointment as the labour minister, Sah had made arrangements for his wife's reappointment through the Health and Population Minister Mehta.
On RSP's recommendation, Prime Minister Balendra (Balen) Shah had then warned Health Minister Mehta and dismissed Sah as labour minister.
A version of this article appears in the print edition of April 21, 2026, of The Himalayan Times.