Abhishek Banerjee was forced to step as the party had nowhere to hide after embarrassing photos surfaced of the Rs 50 crore in currency notes and gold jewellery seized by the ED.
Meanwhile, Chatterjee’s close aide Arpita, from whose apartments Rs 49.8 crore in cash and jewellery was recovered, broke down while being taken for medical check-up.
Earlier in the day, TMC general secretary and spokesperson Kunal Ghosh had called for Partha Chatterjee's expulsion from the party and the ministry.
Nearly Rs 50 crore in cash, and gold believed to be in kilograms were recovered from apartments linked to Partha Chatterjee, besides documents of properties and foreign exchange.
Banerjee, also the Trinamool Congress supremo, said that anyone proven guilty by the court must be punished, but probe 'agencies must not be used to malign political parties'.
Adhikari met Governor La Ganesan at the Raj Bhavan in Kolkata, seeking that Chatterjee, who holds the industry, commerce and parliamentary affairs portfolios, be removed as minister.
"We found cash in the apartment owned by Arpita. The process of counting the currency notes is going on," said an ED official.
The government at Centre is more dangerous than the British Raj. I don’t know how, but I can say the BJP will lose the 2014 Lok Sabha elections, she said.
Banerjee also asserted that anyone was proven guilty by the court must be punished but probe agencies must not be used to malign political parties.
West Bengal Chief Minister Mamata Banerjee slammed the opposition for a "malicious campaign" launched against her, asserting that she does not support corruption.
The Calcutta High Court on July 24 directed the ED, which had arrested Chatterjee in connection with its probe into the scam, to take him to the health facility by an air ambulance.
The TMC said that action would be taken against Chatterjee if the court approves any evidence submitted by the Enforcement Directorate (ED).
"Charges of wrong merit lists and other recruitment anomalies have been raised by the job aspirants. This is unbecoming in Bengal, the land of worshippers of Goddess Saraswati," he said.
The Dhankhar-Banerjee spats were so frequent, often evoking laughter and derision, at least in the TMC, that the fiery Bengal chief minister blocked him from following her on social media.
The veteran Congress leader, who has spent nearly 50 years in politics, said the differences in the Opposition bloc were "like a family quarrel" which would be resolved.
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Meanwhile, the CPI has alleged that the TMC has exposed fissures in the Opposition unity by deciding to abstain from the vice-presidential election.
Doubts whether KCR may abstain like TMC crop up as MPs skip Alva’s nomination filing
ED teams, comprising 80 personnel, conducted simultaneous raids at 13 locations, including houses of state minister Paresh Adhikari in Cooch Behar.
Sonia Gandhi had spoken to Mamata Banerjee on July 15 where the TMC supremo is learnt to have given no indication that she would not support the joint opposition candidate, sources said.
"We were not consulted when Margaret Alva’s name was decided. So, we decided to abstain from voting process for Vice-President election," said TMC leader Abhishek Banerjee.