Delhi Chief Minister Arvind Kejriwal has resigned after an anti-corruption bill was blocked in the state assembly.
Opposition politicians blocked the bill, which would have created an independent agency with the power to investigate politicians and civil servants suspected of corruption.
They argued it was unconstitutional to introduce legislation that did not have the approval of the federal government.
Mr Kejriwal spent 49 days in power after his anti-corruption party made a spectacular debut in recent elections in Delhi, winning 28 seats out of 70.
He earlier threatened to resign if the anti-corruption bill was blocked. A BBC correspondent said he is now expected to launch a campaign for the national elections due this summer.
The BBC reports the bill was blocked by Congress and BJP MPs in a chaotic session at the Delhi Assembly on Friday.