Nayak, the MLA from Nilgiri sent his resignation letter to BJD president and Chief Minister Naveen Patnaik and alleged that he was "neglected and subjected to mental torture" by the party's Balasore district unit.
Majhi in his resignation letter to Patnaik had also made similar allegation of neglect while resigning from the primary membership of the BJD.
Nayak in the last election had defeated Biswal by a margin of over 13,000 votes. Like Majhi, Nayak had resigned from government job and contested the 2014 election and become an MLA.
BJD leaders said that Nayak might have resigned from the party after BJP leader Sushama Biswal joined the party three days ago. As there is possibility that Biswal may get BJD ticket for the Nilgiri seat, Nayak preferred to resign from the party.
Odisha Assembly elections will be held simultaneously with the Lok Sabha elections in four phases on April 11, 18, 23 and 29 respectively.
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