Sudhan Gurung, who resigned as Nepal's Home Minister on 22 April amid controversy over his financial dealings, is set to reclaim the portfolio. Prime Minister Balendra Shah has recommended to President Ram Chandra Poudel that Gurung be reappointed, with the oath of office expected later on Tuesday, 9 June.

Why Gurung Stepped Down

Gurung came under scrutiny in April after reports surfaced of alleged business ties with Deepak Bhatta, a controversial businessman currently in judicial remand on money-laundering charges. Questions intensified when property disclosures on 12 April revealed Gurung to be among the wealthiest ministers in the Cabinet, with substantial cash holdings, shareholdings in multiple companies, and land ownership that reportedly exceeded the legal ceiling.

Gurung announced his resignation on 22 April through a social media post, stating he was stepping down to allow an impartial investigation and to avoid any conflict of interest while holding office. He was the second Cabinet minister to exit within less than a month of the government formed on 27 March following the 5 March elections.

What the Inquiry Committee Found

On 11 May, a Cabinet meeting constituted an investigation committee led by former judge Achyut Prasad Bhandari. The panel has since submitted its report to the Prime Minister. According to the report, no direct connection could be established between Gurung and Bhatta, and no banking records were found showing financial transactions between the two.

During his testimony, Gurung reportedly told the committee that his income was derived from operating a hotel in Thamel, Kathmandu's tourist hub, and that the proceeds were subsequently invested in shares and gold. This account formed a central part of the committee's analysis. The report has not yet been formally published, though multiple media reports indicate a clean chit on the financial-dealings question.

Gurung's Own Defence

When challenged about his disclosed wealth earlier this year, Gurung defended himself on social media. 'When you are born poor, that is not your fault; but if you die poor, that is your fault,' he wrote on Instagram. He added: 'Earning wealth without corruption before joining the government is not a sin; earning wealth through corruption after joining the government is a sin.'

Separately, it later emerged that Gurung had invested in a micro-insurance company promoted by Bhatta — a detail that had fuelled further concerns about the nature of their relationship, even as the inquiry found no direct financial link.

New Cabinet Changes

Alongside Gurung's reappointment, former minister and lawmaker Mahabir Pun is set to be sworn in as Minister for Science, Technology and Innovation. A senior official of the President's Office confirmed receipt of the Prime Minister's recommendation letter, noting that the exact time of the swearing-in ceremony had not yet been determined.

For the past one and a half months, Prime Minister Shah had been holding the Home Ministry portfolio himself. Gurung, elected to the House of Representatives from the Gorkha-1 constituency in western Nepal, is one of the prominent leaders of the Gen-Z movement that emerged in September last year.

What Comes Next

The formal publication of the inquiry report remains pending, and opposition voices may scrutinise its findings once released. Gurung's return will test whether the probe's conclusions hold up to public and parliamentary scrutiny — particularly given the unresolved questions around his investment in Bhatta's micro-insurance venture.