Rastriya Swatantra Party leader Sudan Gurung, who stepped down as home minister in April, has returned to the post less than two months later.

President Ramchandra Paudel administered the oath of office and secrecy to Gurung, as well as to independent lawmaker Mahabir Pun, who was appointed minister for science, technology and innovation.

Gurung's path back to the Cabinet was cleared after a government-formed investigation committee concluded that nothing unusual was found in his landholdings. However, the committee has yet to reach a definitive conclusion regarding his financial transactions and share investments.

The investigation found that Gurung owns 19 ropani and 15 annas (1.014 hectares) of land in Karkichhap, Dhankuta, while properties registered in his father's name include 30 kattha in Bharatpur-18, Chitwan, and 221 ropani (11.29 hectares) in Chum Nubri, Gorkha. According to a committee member, the Gorkha land carries limited market value, while only the properties in Chitwan and Bhedetar are likely to be worth significant amounts. As a result, the committee did not consider the landholdings unusual or suspicious.

Rather than appointing a replacement, Shah kept the home ministry portfolio for himself while awaiting the outcome of the investigation, signalling that Gurung could be reinstated if cleared of the allegations.

When Gurung walked out of the home ministry on April 22, he framed his resignation as a test of the political culture he had promised to build.

The former home minister, who had risen to the limelight after last September’s Gen Z movement and had become one of the most recognisable faces of Prime Minister Balendra Shah’s government, said he was stepping aside to allow an impartial investigation into allegations surrounding his financial dealings.

“To ensure an impartial investigation into matters concerning me and to avoid any conflict of interest while in office, I have resigned from the post of home minister with immediate effect,” he said.

Less than two months later, Gurung returned to the ministry.

Gurung’s political ascent had been unusually swift.

From the outset, Gurung emphasised an “action-oriented” approach. One of the Cabinet’s early decisions was to implement the report of a high-level committee formed to investigate the September 8–9 Gen Z protests. Appointed home minister on March 27, he quickly became one of the most visible members of the new government.

He initiated discussions to arrest CPN-UML chair and former prime minister KP Sharma Oli and former home minister Ramesh Lekhak. Police officials initially advised caution, saying arrests should follow legal procedures, including court-issued warrants.

Officials said Gurung pressed for immediate action. He later visited the Police Headquarters and insisted on the swift implementation of the high-level panel’s recommendations. Oli and Lekhak were subsequently arrested under emergency warrants but were released by a court order 13 days later. Investigations into the cases are ongoing.

At the same time, he generated controversy.

He visited construction sites and infrastructure projects that fell outside his ministry’s jurisdiction, prompting criticism from political leaders and bureaucrats. Lawmakers from Bagmati Province reportedly complained that he undertook district visits without adequate coordination. Questions were also raised within government circles about his involvement in matters handled by other ministries.

Yet these controversies remained secondary to the allegations that would eventually force his resignation.

The crisis began when media reports highlighted Gurung’s investments in Star Micro Insurance Company and Liberty Micro Life Insurance. The reports noted that Deepak Bhatta and the Shanker Group were also linked to the companies.

Further questions emerged after a photograph surfaced showing Bhatta being honoured as a donor by Hami Nepal, an organisation chaired by Gurung, in 2021.

The controversy deepened when Gurung’s public asset declaration did not mention investments in the two micro-insurance companies, creating further pressure for him to resign.