"I have decided to quit my membership from Rajya Sabha and also from JD(U) to protest dictatorial attitude of Bihar Chief Minister Nitish Kumar," Kushwaha said addressing a state-level meeting of a non-political group he has floated with some other disgruntled JD(U) leaders.
"I will complete the formalities (in this regard) in Delhi)," the rebel JD(U) MP, once a close aide of the Bihar CM, said.
Earlier, talking to reporters, Kushwaha, who voted in favour of UPA on FDI issue in Rajya Sabha, said he did so to protest "dictatorship" of Nitish Kumar in the party.
Accompanied by former JD(U) MPs and MLAs like Arun Kumar, Satish Kumar, Lutfur Rahman and Sudhansu Shekhar Bhaskar, Kushwaha announced to form a new party at a rally at Gandhi maidan here on March 3 next year.
Though photograph of another dissident JD(U) Lok Sabha MP Magnilal Mandal was displayed on the banners for the function of "Bihar Nav Nirman Manch", he was not present during the programme.
The banners also dislayed photograph of former NDA Convener George Fernandes.
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During his speech, Kushwaha, who was made Leader of the Opposition during the 2000-05 Assembly when Rabri Devi was CM, criticised Nitish Kumar's claim of development of Bihar stating it was "not true."
"He (Kumar) is surrounded by sycophants, majority of whom have crossed sides from RJD and is paying no attention to genuine JD(U) workers," the rebel JD(U) MP alleged.
"I protested this at Rajgir meeting of the party and have been targeted since then," he added.
Ex-MP Arun Kumar, former MLAs Satish Kumar, Latfur Rahman and Sudhansu Sekhar Bhaskar also lambasted Nitish Kumar for his "dictatorial" attitude.