42 out of 73 members of Mongolia's legislature, the Great Khural, voted to oust Jargaltulgiin Erdenebat along with his 15 cabinet ministers.
Late last month, the ruling Mongolia People's Party (MPP) issued a letter calling for Erdenebat and other senior leaders to resign, alleging they had violated the law in pursuit of their own business and political interests.
The letter came just weeks after a close loss by the party's candidate in a scandal plagued presidential election.
The MPP won by a landslide in the 2016 elections, taking 65 out of 76 seats in the national parliament, and formed the cabinet headed by Erdenebat, who is alleged to have used his political powers to spy on fellow party members.
But in July, the MPP's presidential candidate and party chairman Miyegombo Enkhbold lost a closely contested election to opposition leader Khaltmaa Battulga, provoking anger among parliamentarians against their own party.
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