Shiv Sena leader Raj Thackeray on Sunday resigned from the party's executive committee and as head of party's students wing.
Raj was also conspicuous by his absence at a meeting of senior party leaders convened at the residence of Sena supreme Bal Thackeray in suburban Bandra.
Concerned over the developments, Bal Thackeray called an emergency meeting of party leaders at his residence.
Returning to Mumbai after a tour of Nasik, Raj addressed his supporters and announced his resignation, but said he did not wish to leave the Shiv Sena.
Breaking his silence after sending a letter to Bal Thackeray objecting to the style of functioning of Udhav, Raj said he resigned from the posts as he does not wish to dance to the tune of a 'coterie of petty clerks' who do not know politics.
Raj said the Sena chief was like God to him and would continue to remain so.
"But am not ready to accept the coterie of priests who treat the temple as their own and dictate terms," he said.
He added that he did not mean to embarrass anybody, not least the Sena chief.
Raj, who had shot off a letter to Bal Thackeray questioning Udhav's leadership, said his decision to resign was taken after giving a due thought and he did not wish to share the misdeeds of the party leaders.
"I have faced enough humiliation so far and cannot work in this environment," he said.
Raj said that by raising his voice, he did not aim to grab a place of prominence within the party.
"In fact it was me who proposed Udhav's name when the issue of executive president came up," Raj said adding, "It seems to me now that I shot myself in the foot."
He alleged his supporters were selectively victimised by the coterie controlling the party when it came to nominations for party posts or elections.
"It happened to the point that I stopped recommending any names, for I was sure the party leaders would drop the name," Raj said.
"The coterie has taken a supari (contract) to finish off the Sena and feed misleading information to the Sena chief from time to time," Raj alleged.
Supporters of Raj also attacked the car of party mouthpiece Saamna editor Sanjay Raut and attacked the office of the party's labour front. Raut and most of labour wing office bearers are considered close to Udhav.
Meanwhile, senior Sena leader Manohar Joshi, who met Raj Thackeray in an attempt to broker peace between the warring cousins, said there was still a possibility of rapprochement.
"I believe that Shiv Sena Supremo Balasaheb Thackeray would succeed in finding a way out of this situation," Joshi told reporters after Raj announced his resignations from all the party positions he held.
First Look: More trouble in the Sena camp