Resignations from 26 MLAs might prove as a major setback for Chief Minister Kiran Kumar Reddy though the Congress party holds a majority of the 294 seats.
The rebel MLAs took the decision to table their resignation after the Central Bureau of Investigation (CBI) conducted raids on the businesses of Jagan and charged him and his father, the former CM, late YS Rajashekhara Reddy (YSR) in its FIR. Jagan and his father were accused of hatching a plot to cheat the state government.
Jagan has been accused of influencing YSR and other government officials in order to receive special favours from the government in allocating licences for ports, SEZs in return of huge sums of money during 2004-2009.
Several charges such as criminal conspiracy, cheating, criminal breach of trust, falsification of accounts and criminal misconduct have been brought out against Jagan in CBI's FIR.