"On the advice of the Chief Minister of Andhra Pradesh, the Governor has accepted the resignations tendered by Dharmana Prasada Rao, Minister for Roads and Buildings and Sabita Indra Reddy, Minister for Home, with immediate effect," a press communique from Raj Bhavan said.
The two portfolios will be held by the Chief Minister until alternative arrangements are made, it said.
Prasada Rao, who was Revenue Minister in the late Y S Rajasekhara Reddy government, had submitted his resignation in August last year after he was made an accused in the alleged Vanpic land allotment scandal.
The two ministers, however, continued in their posts though they had offered to step down.
As the main opposition TDP and some Congress leaders stepped up pressure for removal of the two "tainted" ministers, Chief Minister N Kiran Kumar Reddy held talks with the Congress high command in Delhi earlier this month and was reportedly told to drop the ministers.