Kumar submitted his resignation to Gowda on 'moral grounds' and wrote to Bangalore Development Authority, surrendering the site allotted to him under the Chief Minister's discretionary quota during the B S Yeddyurappa regime.
He faced the charge that he was allotted a 4000 square feet site in violation of rules though his kin, including his mother and daughter, owned a house and two sites.
Shortly after Kumar submitted his resignation, Gowda said "I don't think Suresh Kumar has committed any crime. By virtue of being an MLA, he was allotted the site under the discretionary quota. He will continue in the ministry".
Gowda told reporters that Kumar had discussed with him about the allotment of site and also the sites owned by his kin, located outside Bangalore City limits.
The Chief Minister said Kumar had sold those sites to raise funds for purchasing a house. "Kumar submitted his resignation as he was pained by the allegations", Gowda said.
Kumar is perceived to be a man with a clean image in the political class in the state.