
Gurung, a key figure in the Gen-Z protests last September that toppled Nepal’s previous government, said he was stepping down to ensure a “fair investigation” into matters related to him.
“I have resigned from the position of home minister with effect from today,” Gurung, 38, posted on his social media accounts.
“For me, morality is greater than a position and there is no greater power than public trust,” he said.
Dipa Dahal, press advisor to prime minister Balendra Shah, said his resignation has been received.
Gurung participated in the deadly protests that began as a demonstration against a brief social media ban, but were fed by wider grievances at corruption and a woeful economy.
At least 76 people were killed and more than 2,500 wounded during the two days of violence on Sept 7-8.
In January, Gurung joined the Rastriya Swatantra Party (RSP) and won a seat in parliament after the party swept to a landslide victory in the March elections.
Gurung made headlines a day after taking his oath of office for arresting former prime minister KP Sharma Oli and ex-home minister Ramesh Lekhak for their alleged involvement in the deadly crackdown on protesters in September.
However, soon he himself was beset by allegations over his financial investments and assets, as well as links with a controversial businessman being investigated for money laundering.
On Monday, Gurung had dismissed the allegations as “rumours”.
“I would just like to say that accusations and truth are not the same thing. Decisions should be based on evidence, not emotion,” he said on social media.
Gurung is the second minister to resign in the new government after the labour minister was dismissed over code of conduct issues.