"Rawat handed over his papers after consulting me," Chief Minister Vijay Bahuguna said.
The CM added that Rawat would soon also step down from his chairmanship of the Uttarakhand Purv Sainik Kalyan Nigam Ltd.
The Opposition BJP had accused state Cabinet minister Rawat of holding offices of profit as the chairman of the above entities and sought his dismissal from the Assembly over the same.
Although, the state government had later removed the two posts occupied by Rawat from the list of offices of profit, the row had continued with the Opposition persistent on its demand for action against Rawat.