He is the second minister to quit the Congress-led Ommen Chandy government after then Finance Minister K M Mani of Kerala Congress (M) resigned in November last over the multi-crore scandal, giving jitters to the UDF Government in Kerala ahead of the coming assembly elections.
Addressing a press conference here, Babu said he had handed over his resignation to Chief Minister Chandy and was quitting on moral grounds even though no FIR had been registered against him as of now.
Earlier in the day, the Vigilance Court in Thrissur directed the state Vigilance and Anti-Corruption Bureau to register a case against Babu over corruption charges against him in the scam.