46-year-old Khanna is legislator from Dhuri Assembly seat.
"I have decided to go ahead with my resignation from the Punjab Vidhan Sabha and active politics to devote my time to my family and business.
"I had decided to resign in April last year, but did not do so due to some last minute personal reasons. I have already conveyed this decision to the party and the leaders," according to a statement released by him.
The resignation of Khanna has reduced the number of Congress MLAs in Assembly to 44 and necessitated by-election to the Dhuri Assembly constituency within the stipulated period of six months.
The total strength of Punjab Assembly is 117.
This is the second time that Khanna has resigned from the membership of legislative Assembly. He had earlier sent his resignation to Charanjit Singh Atwal, the Speaker of Punjab Assembly in April 2014 but he didn't turn up to confirm his resignation.
Khanna's mother, Nagindra Kaur, is daughter of Maharaja Bhupender Singh of Patiala.
He had been feeling disillusioned after Partap Singh Bajwa was made PPCC chief replacing Amarinder Singh.
Khanna also runs an NGO 'Umeed'.
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