On a day of dramatic developments, Congress President Sonia Gandhi met Prime Minister Manmohan Singh and it was decided that both should be asked to put in their papers to contain any further damage to the government that has already been plagued by a series of scandals.
"Yes, I have resigned," said 64-year-old Bansal emerging from a meeting with the Prime Minister, a week after his nephew was arrested for allegedly accepting Rs 90 lakh from a Railway Board member for a promise of promotion.
Soon after Bansal, Law Minister Ashwani Kumar, who is under attack over vetting of CBI report in the probe into coal block allocation scam, also met the Prime Minister and submitted his resignation.
PMO spokesman said their resignations are being forwarded to President Pranab Mukherjee.
In his resignation letter, Bansal maintained that he was not aware that his nephew Vijay Singla was in contact with Railway Board Member Mahesh Kumar but he still thought it proper to step down.
He said he looks forward to an expeditious investigation into the allegations.
Ashwani Kumar, in his resignation letter, said he was resigning to put an end to "unnecessary controversy" and "public perception of any wrongdoing".
He maintained that the Supreme Court had not passed any strictures against him.
The government is expected to come out with a detailed statement on the issue tomorrow.
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