However, there is no immediate threat to the government due to the resignations. In the 294-member Assembly, the Congress has 173 MLAs, including 18 from the actor-turned-politician Chiranjeevi’s Praja Rajyam Party which has since merged with the ruling party. The Congress’ ally Majlis Ittehadul Muslimeen has seven MLAs while three Independents are also supporting the ruling party.

Former Minister P Subash Chandra Bose said the Congress leaders loyal to Jagan were pained at the inclusion of YSR’s name in the FIR. “It is clearly an attempt to malign YSR and his family,” he said.

The central governing council of the YSR Congress Party would meet shortly to chalk out the future course of action. In the midst of all this political drama, Jagan continued his tour programme in Krishna district to console the family members of those who had committed suicide or died of shock following YSR’s death in a helicopter crash in September 2009.

“This government has already diluted the welfare programmes launched by YSR which were popular with the public, and now they are trying to tarnish the image of a leader who brought back the Congress to power in the state,” Subhashchandra Bose said.

According to the FIR filed by the CBI, as per the direction of the state high court, Jagan and YSR had entered into a criminal conspiracy and indulged in abuse of power by taking decisions to favour some companies and individuals and, in the process, caused huge losses to the state.

The companies in return invested crores of rupees in business enterprises owned by Jagan, including Jagathi Publications, Sandur Power Company Limited, Bharathi Cement Corporation and Carmel Asia Holdings Private Limited, the FIR said.