Fiscal Nepal
First Business News Portal in English from Nepal
Sudhan Gurung Home Minister
KATHMANDU: A major investigative revelation has raised serious ethical and governance concerns over alleged financial links between Home Minister Sudhan Gurung and a controversial micro-insurance company reportedly connected to influential intermediary groups led by Deepak Bhatta and the Shankar Group.
According to documents and corporate records cited in the investigation by DiyoPost Online, Gurung is identified as a shareholder in Star Micro Insurance Company Limited, one of seven micro-insurance firms that received operating licenses under controversial circumstances following Nepal’s 2022 general, provincial, and local elections.
The issuance of licenses to seven micro-insurance companies by the Nepal Insurance Authority shortly after the elections has long been under scrutiny. The investigation alleges that these licenses were distributed in a manner favoring a network of business groups and individuals reportedly aligned with Dipak Bhatt.
Among those said to have benefited are entities and individuals linked to Infinity Holdings, Shankar Group, and prominent industrialists including Shekhar Golchha, Bhawani Rana, Pashupati Murarka, Hari Neupane, Kishanlal Dugad, and Rajesh Agrawal. Star Micro Insurance Company Limited is identified as one such beneficiary.
Reports previously published by Himal Khabar claim that the licensing process under then-chairman Surya Prasad Silwal disproportionately favored select business houses under the pretext of expanding insurance access to low-income populations. Silwal himself later faced a corruption case filed by the Commission for the Investigation of Abuse of Authority.
Corporate share records reportedly show that Home Minister Gurung holds shares worth NPR 2.5 million in Star Micro Insurance. His name appears as the 49th shareholder, with personal details matching those publicly disclosed by the Prime Minister’s Office.
However, the investigation notes a critical discrepancy: Gurung allegedly did not declare this shareholding in his official asset disclosures, raising questions about transparency and compliance with legal requirements for public office holders.
The company itself is chaired by Sujan Acharya and includes four directors, among them Prajuni Bajracharya, an employee of Infinity Holdings, a firm linked to Bhatt. The company reportedly has 57 shareholders, many of whom are said to represent or be affiliated with Bhatt’s broader business network.
The investigation outlines an extensive network of individuals and entities connected to the company:
Among them are:
Additionally, Lakpa Sonam Sherpa, chairman of Yeti Group and previously charged in the Nepal Trust land misappropriation case, is also listed as a shareholder.
The report further claims that media investments are intertwined within the shareholding structure. A company linked to Onlinekhabar is said to have ownership stakes, indicating potential media influence by the same network. Similarly, individuals connected to business media platforms and corporate groups reportedly hold shares in the company.
Records show that Remi Caffin, a company that owns Onlinekhabar Nepal, also holds shares in this company. Registered on September 8, 2022 (Bhadra 23, 2079 BS), this company is also the owner of the well-known Onlinekhabar.com. This clearly indicates that Dipak Bhatta’s influence extends into the media sector as well.
Likewise, Madan Lamsal, associated with the media outlet New Business Age, has also acquired shares in this company.
This raises broader concerns about the intersection of business, politics, and media influence in Nepal’s economic governance landscape.
Home Minister Gurung rose to prominence during the Gen Z-led protests advocating for anti-corruption reforms, governance transparency, and economic restructuring. He played a key role in negotiations during the protests and later became a central political figure aligned with Rabi Lamichhane and Balen Shah.
Following the political realignment, Gurung was elected from Gorkha-1 constituency and subsequently appointed Home Minister under the new government led by Balen Shah. His early tenure was marked by high-profile actions, including the arrest of former Prime Minister KP Sharma Oli and former Home Minister Ramesh Lekhak over their roles in suppressing protests.
However, critics argue that such actions were more symbolic than substantive, alleging that accountability for serious incidents, including deaths during protests, remains incomplete.
The latest revelations have intensified scrutiny over the government’s commitment to good governance and anti-corruption. Gurung, who represents a movement that strongly opposed intermediary-driven economic systems, is now himself accused of being financially linked to such networks.
Further questions arise from disclosures that Shankar Group is among the largest donors to Gurung’s organization, “Hamro Nepal,” suggesting deeper institutional ties.
In response to questions about his asset declarations, Gurung reportedly stated, “Being born poor is not a mistake; dying poor is,” a remark that has drawn mixed reactions and further debate over accountability standards for public officials.
The findings have placed Prime Minister Balen Shah’s administration under mounting pressure, as the presence of alleged conflicts of interest within the cabinet challenges its reformist narrative. Observers note that this case could test the credibility of Nepal’s new political leadership, particularly in its promise to dismantle entrenched patronage networks.
With investigations ongoing and public discourse intensifying, the case is expected to have significant implications for Nepal’s political economy, regulatory integrity, and investor confidence in the financial sector.
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