The development follows Congress' failure to form its government in Goa despite having emerged as the single largest party in the assembly election this February.
The party had clinched 17 seats in the 40-member legislature, four more than the BJP, which managed to cobble together a majority with local parties to form its government under Manohar Parrikar.
Singh, considered close to Congress vice president Rahul Gandhi, had come under severe criticism for going slow in initiating talks with smaller parties to sew up a coalition and stake claim to form a Congress-led government.
"Congress president Sonia Gandhi has assigned the tasks of looking after Karnataka and Goa affairs to new AICC teams. While K C Venugopal has been made general secretary incharge of Karnataka, A Chella Kumar has been made AICC incharge of Goa," party general secretary Janaradan Dwivedi said in a statement.
Singh has been one of the most vocal Congressmen advocating Rahul Gandhi's elevation as party president.
After the Goa debacle, Singh had accused Parrikar of having cheated the people of the state by "robbing the mandate". He had alleged Union Minister Nitin Gadkari, who was despatched to Panaji by BJP president Amit Shah to explore ways of forming a government, indulged in "aggressive MLA shopping" to retain power.
"My special thanks to honourable member Digvijay Singh, who happened to be in Goa but did nothing so that I could form the government," Parrikar had told Rajya Sabha while making sarcastic comments against Singh.
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