"To facilitate an impartial probe by Lokayukta, Katta Subramanya Naidu has resigned from the ministry today. I have forwarded it to Governor H R Bhardwaj for acceptance", Chief Minister B S Yeddyurappa told reporters.
The anti-corruption watchdog had on Thursday registered an FIR against Naidu and nine others, including his son Katta Jagadish Naidu, a city corporator, over alleged irregularities in Karnataka Industrial Area Development Board land purchase and securing compensation for land acquired by it.
The FIR said Naidu allegedly had a role in the allotment of 385 acres to ITASKA Software, a firm set up by one of his aides to establish a SEZ while he was industries minister in 2007. The Lokayukta had arrested his son Jagadish a few months ago for allegedly trying to influence a witness.
He later obtained bail from the high court.
Naidu is the third minister to quit this year after H Halappa, who resigned after rape charges were levelled against him, and R Ramachandra Gowda, following allegations of recruit scams.