A day after the High Court upheld a Vigilance Court order for further investigations in the case, 82-year-old Mani, who put up a stiff fight to stay in office, however, had to yield to pressure from Congress, the lead partner which stood firm stating that the resignation was inevitable.
Kerala congress chief whip, Thomas Unniyadan, has also submitted his resignation.
Mani announced his decision to resign after day long parleys with his party colleagues and made it clear that his party will continue to provide unstinting support to Chandy and UDF.
Chandy said even though the High Court had not pronounced him guilty in the case, Mani's decision to resign was to uphold high political and democratic values.