Photo: Collected

KATHMANDU, Nepal, June 9, 2026 (BSS/AFP) - Nepal's interior minister, a leading youth anti-corruption figure who stepped down in April during an investigation into his finances, was cleared of wrongdoing and reinstated on Tuesday, government officials said.

Sudan Gurung was a key figure in the 2025 youth-led anti-corruption protests that toppled Nepal's previous government. He was appointed home minister after winning a parliamentary seat in March elections.

However, he stepped down the following month to ensure a "fair investigation" after reports raised questions about whether he had failed to disclose some financial investments.

A government committee tasked with examining the allegations submitted its report last week.

"Prime Minister Balendra Shah reappointed Gurung as home minister," Shah's media adviser Dipa Dahal told AFP.

Gurung was subsequently sworn back into office by President Ram Chandra Paudel on Tuesday.

He participated in the deadly September 2025 protests, which began as demonstrations against a brief social media ban but were fuelled by broader public anger over corruption and the struggling economy.

At least 76 people were killed and more than 2,500 wounded during two days of violence.

In January, Gurung joined the Rastriya Swatantra Party (RSP), which swept to a landslide victory in March.

He made headlines a day after taking office by ordering the arrest of former prime minister KP Sharma Oli and former home minister Ramesh Lekhak over their alleged involvement in the deadly crackdown on protesters.

However, Gurung soon faced allegations regarding his financial investments and assets, as well as purported links to a businessman under investigation for money laundering.

Gurung called the allegations "rumours" and denied withholding information about his investments. "Accusations and truth are not the same thing," he said on social media.

Nepal currently ranks 109th out of 180 countries on Transparency International's Corruption Perceptions Index.