Himachal Pradesh Transport and Tourism Minister G S Bali on Sunday resigned from the Cabinet in the wake of a television channel's expose into his alleged vulgar birthday party at a hotel in Macleodgunj, about 200 km from Shimla.

Chief Minister Virbhadra Singh said that Bali submitted his resignation to him, which has been accepted.      

"Bali submitted his resignation to me late Saturday night, which I faxed to Governor V S Kokje. I received a communication from the Raj Bhawan that Bali's resignation has been accepted," Singh told media persons.

Reacting to the TV channel's expose, the BJP demanded immediate dismissal of the Congress government in the hill state and imposition of President's rule there.

Addressing media persons in Palampur in Kangra district, senior BJP leader Prem Kumar Dhumal asked the Governor to dismiss Virbhadra Singh government immediately and recommend President's rule so that free and fair elections are held in the state.

The chief minister said though Bali told him that the sting operation seemed to be motivated as it allegedly showed only a part of his birthday celebration on July 26 night without going into merit or demerit of the incident, I asked him to resign from the Cabinet to keep high tradition and values the Congress believed in.

The television expose purportedly showed Bali dancing with some women. He and his friends, a few industrialists and bureaucrats reportedly joined him in the party that continued till late in the night on July 26.

Singh said Bali told him that his friends, some of whom are NRIs, had organised the party at a hotel in Macleodganj.       

He (Bali) had gone there with his wife, daughter and other family members and left the venue shortly after cutting the cake, the chief minister said quoting Bali.