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President K R Narayanan accepted Jharkhand Governor Prabhat Kumar's resignation on Friday.
Bihar Governor V C Pande has been asked to take additional charge of Jharkhand until further notice.
Kumar, whose alleged acceptance of hospitality from a tainted businessman during his tenure as Union Cabinet secretary has triggered a controversy, sent his resignation to the President soon after his arrival in Delhi from Ranchi on Thursday.
Ashok Chaturvedi, the managing director of Flex Industries who has been booked in a duty evasion case, had allegedly told the Central Bureau of Investigation that he had footed the bills for some parties hosted at Kumar's residence when the latter was Union Cabinet secretary.
Following this, the Centre had asked Kumar to resign as governor.
Kumar insists he has never done anything that could lower his dignity or hurt his integrity.
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