"In consultations with the CM, governor BL Joshi has relieved the minister from his post with immediate effect," said a notification issued by the state government.
The Lokayukta in a report had indicted Yadav of drawing salary from two places and insisted that he be removed from the Cabinet.
Yadav is the sixth minister who has been dismissed on the basis of Lokayukta report.
The charge has now been given to Indrajeet Saroj, Social Welfare Minister, said the notification.
Justice NK Mehrotra, Lokayukta justice, in his report accused Yadav of being associated with two schools, one under Social Welfare Department and one under Primary Education Department.
Investigations revealed that he was drawing salary of both of a minister, as well as the headmaster's from a government aided school.
The Lokayuta said that the salaries drawn by Yadav should be recovered from him with interest.
"He should have been removed immediately after the Lokayukta report was received by the Chief Minister," said Vijay Bahadur, BJP spokesman.