The minister rushed to Naveen Nivas, residence of Chief Minister Naveen Patnaik, and tendered his resignation in the wake of registration of a case at Balasore Town Police Station against him and his family members.
"I have submitted my resignation to the Chief Minister on moral grounds," Mohanty told reporters outside Naveen Nivas, while refuting the charges levelled by Barsha Sony Mohanty, his daughter-in-law.
Barsha had lodged an FIR against the minister, his wife Pritilata, his son Rajasree and other members of family last night.
Mohanty, MLA for fifth consecutive term, had been a minister since 2000 and held important portfolios including parliamentary affairs, industries and IT.
On the basis of the complaint lodged by Barsha, a case has been registered against the minister and others under section 498 (A), 506, 448 and 34 of IPC, police said.
In her FIR, the woman said she married Rajasree on June 24, 2012. During marriage, her parents had given Rs 10 lakh and other household articles.