Rao, who had closeted himself in his house since the declaration of the election results on Sunday, sent his resignation to TRS General Secretary Madhusudhana Chary.
Rao had offered to step down soon after the results but senior party leaders prevailed upon him. Even now, party leaders are trying to persuade him to withdraw the resignation. "There is no question of accepting his resignation. We are receiving innumerable messages from well-wishers of the party requesting our leader to withdraw his resignation," Chary said.
Chary said the TRS would hold a meeting of his executive committee tomorrow to discuss the issue. "We will request KCR to preside over tomorrow's meeting. He is our supreme leader," he said.
Scores of party workers staged a dharna in front of Rao's house here demanding that he continue to lead the party.
The TRS, which is fighting for a separate statehood to Telangana, had forced the by-elections by asking its MPs and MLAs to resign to demonstrate that the "separate Telangana sentiment" was prevalent among the people of the region. However, the TRS could retain only seven of the 16 Assembly and two of the four Lok Sabha seats it had won in the previous elections.