The 55-year-old six-time Congress MLA from Rewari alleged bias in matters of development and recruitment and flayed the controversial induction of members of various Commissions and statutory bodies and "domination" of the bureaucracy.
Joining the attack, Congress leader Birender Singh, a known Hooda detractor, today warned that things could "deteriorate" and other ministers may follow suit if Hooda is not replaced.
Yadav told PTI here that he had sent his resignation to Hooda. He, however, said he would continue in Congress till the end and Sonia Gandhi is his leader.
Calling himself a Congress high command loyalist, Yadav said relations with Hooda started deteriorating in his second term.
"I am Sonia Gandhi's loyalist and whatever she says I will abide. I have old relations with the Gandhi family. I had no problem with Hooda until 2009, but things started taking different shape in his second term," he said.
"I was made Finance Minister (in Hooda's second term), but even when I was carrying on well, this portfolio was snatched from me on a false ground. A CD was prepared where I was falsely accused of praising Narendra Modi whereas I had made some comments pertaining to the agricultural policy of the Gujarat Government," he said.
Backing Yadav, Congress leader Birender Singh said, "What Ajay Yadav is saying today, I have been saying for the past five years now. I have been saying there is regional bias in development."
He said that even though it was "late", Yadav, a six-time MLA, "has taken the right step."
Singh, who has already said that he will not contest the October assembly polls if Hooda is not remove, claimed if the party high command would not act now, "things are set to worsen".
"I have information that like Yadav, others will also follow suit," he said and claimed that another Minister, "is contemplating to resign".
Yadav said the Congress won only one seat in the state in the Lok Sabha elections, but has failed to learn any lessons.
"Somebody has to bell the cat...And I decided to take the step," he said.
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