Nepal, June 6 -- A government-appointed inquiry committee has cleared former Home Minister Sudan Gurung of corruption allegations, opening the door for his possible return to the post, according to political sources.

The three-member panel, led by former High Court Judge Achyut Prasad Bhattarai, submitted a 45-page report to Prime Minister Balendra Shah at Singha Durbar on Friday.

Gurung, a lawmaker from the Rastriya Swatantra Party (RSP), had stepped down as Home Minister on April 22 after allegations surfaced over an alleged illegal partnership with controversial businessman Deepak Bhatt and undisclosed shareholding in a micro-insurance company.

At the time of his resignation, Gurung said he was stepping aside to ensure an impartial...