Jayalalithaa announced in a statement here that Velusamy, a former Minister, was being removed as AIADMK's Coimbatore Urban District Secretary and replaced him with his Coimbatore suburban counterpart and Municipal Administration Minister, S P Velumani.
Velumani will handle party affairs till an appointment is made to the post of Urban District Secretary, she said.
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The AIADMK general secretary however did not divulge the reasons for Velusamy's removal from the key post.
Meanwhile, Velusamy handed over his resignation letter to Corporation Commissioner G Latha, official sources said.