Rao, who had resisted growing calls for stepping down following the allegation, had tendered his resignation yesterday and it was accepted by Governor Vajubhai R Vala today, ending months of uncertainty hanging over the institution.
"Hon'ble Governor of Karnataka is pleased to accept the resignation of Dr. Justice Y. Bhaskar Rao, as Lokayukta of Karnataka State with immediate effect," a Raj Bhavan communique said today.
Rao is on a long leave since July last after his son Ashwin Rao was arrested by the Special Investigation Team (SIT) in connection with the case. A motion moved by BJP and JDS and also supported by the ruling Congress seeking the removal of Rao is pending before the Karnataka Assembly with the Speaker Kagodu Thimappa considering it before referring the issue to the Karnataka High Court Chief Justice to take the process forward.

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