Prime Minister Atal Behari Vajpayee forwarded Kumar's resignation, sent from a Chennai hospital -- where the minister is admitted -- to President K R Narayanan. Vajpayee has recommended that Union Minister of State for Personnel J Janarthanam, who is also from the AIADMK, hold the additional charge of Revenue, Banking and Insurance till further orders.

The resignation is likely to be accepted by the President when he arrives from Kerala tomorrow. Kumar becomes the third minister to resign over the past two months from the Vajpayee Cabinet, and the second of the AIADMK. Buta Singh and S Muthiah had resigned following framing of charges in corruption cases by courts. There is speculation over the reasons behind Kumar's resignation.

Sources said that he incurredJayalalitha's displeasure after the mass transfer of Income Tax officials bypassing both the Finance Minister and the Revenue Secretary. There were several irregularities about the transfers and the impression got around that Kumar had taken this step to shield Jayalalitha. At least five officers, looking into Jayalalitha's cases, were among those transferred. Ironically, a few days later, a court upheld the framing of charges against Jayalalitha in the colour TV purchase scam.

Sources said Jaya was angry at the "adverse publicity" she got when she actually didn't "benefit" out of it. She had reportedly expected Kumar to "quietly manage" the cases against her and her aide Sasikala Natarajan.

Jayalalitha is said to have indicated to the Prime Minister a couple of days ago that she wanted D Sundaram, another AIADMK RS member, to replace Kumar. Incidentally, Jaya reportedly visited Kumar at the hospital and told him to resign immediately.

Kumar, sources said, requested Jayalalitha to let him go abroad for"treatment" and that he would send his resignation from there. However, she did not agree.

Janarthanam is expected to hold charge until Sundaram is inducted, most likely before the Budget session of Parliament begins on May 27. Kumar, a professional chartered accountant, had been with Jayalalitha all through her crisis and was suitably rewarded when the AIADMK joined the coalition at the Centre. Kumar's RS membership is ending next month but there was no constitutional bar on his continuing in the ministry for six months without being member of either House of Parliament.