A Raja quit on Sunday night from the post of Union Communications Minister amidst mounting opposition pressure demanding his resignation in the alleged 2G spectrum scam. Raja’s resignation will now result in appointment of a new Minister by the government.

Raja drove to Prime Minister Manmohan Singh's official 7 Race Course Road residence to hand in his papers. 'My leader (Karunanidhi) advised me to tender my resignation to the prime minister...I will prove that I did everything according to law,' Raja said.

The prime minister and Congress president Sonia Gandhi, who also heads the ruling United Progressive Alliance, had an unscheduled meeting on Sunday to discuss the Raja issue.

"I have asked Raja to resign only to allow the functioning of Parliament. Stalling of parliamentary proceedings during the last one year was part of a pre-planned effort to get the ouster of Raja. Raja is a Dalit who had totally dedicated himself to the cause espoused by leaders like Dr BR Ambedkar. He is my affectionate brother," said DMK top leader M Karunanidhi.

Raja has been accused of causing a huge loss to the exchequer by allegedly allotting licences for 2G spectrum. According to a report by the Comptroller and Auditor General Raja allotted the licences on a first-come-first-serve basis instead of auction which resulted in a loss of more than Rs 1,70,000 crore to the exchequer.

Raja’s exit has led to speculations about the new appointment to be made. Sources say while Union Textiles Minister Dayanidhi Maran could also be considered for the job, others in race include TR Baalu as well as M Karunanidhi's daughter Kanimozhi.