Mr Chavan has denied the allegations The chief minister of India’s western state of Maharashtra has resigned over his alleged role in a scam involving homes for war widows.
Ashok Chavan was ordered by the ruling Congress party to tender his resignation to Maharashtra’s governor while the matter was investigated.
Mr Chavan’s relatives, army officers and bureaucrats are among those who allegedly acquired apartments.
He denies any wrongdoing in relation to the Mumbai housing project.
Meanwhile, Suresh Kalmadi, the much-maligned organising committee chief of last month’s Commonwealth Games in Delhi, also quit his post in the Congress party on Tuesday.
Mr Kalmadi has been under investigation over claims of corruption at the Commonwealth Games. He denies any involvement.
Mr Chavan, 51, is thought to have offered his resignation to Congress party chief Sonia Gandhi.
It was reported last month that three of his relatives had bought apartments in the Adarsh Cooperative Housing Society in Mumbai’s upmarket Colaba area.
“Pending enquiry, [Mr Chavan’s] offer of resignation has been accepted. He has been asked to tender his resignation to the state governor,” Congress party general secretary Janardhan Dwivedi said.
Just days ago, Mr Chavan shook Barack Obama’s hand when the US president landed in India.
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