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Gujarat's controversial BJP MLA Madhu Srivastav, who hit headlines by appearing in a sting operation and confessing he had paid money to Best Bakery riot case prime witness Zaheera Sheikh to turn hostile, on Thursday resigned from the party following allegations of corruption in a state-owned dairy firm he heads.

Asked about the reason which prompted him to quit the party, Madhu's brother Chandrakant said the state government was "unnecessarily harrassing him in the Vadodara dairy corruption case".

"I felt hurt after the issuance of notice to me by the registrar of the Gujarat government in connection with the recovery amount of Rs 17 lakh from me and other 18 directors of the Baroda Milk Dairy," Madhu told PTI in Vadodara.

Madhu is the President of the Baroda Milk Dairy whose annual turnover is Rs 300 crore.

State BJP chief Purshottam Rupala said Madhu's resignation has been received by the party.

"The state registrar of cooperative sent him a notice on Vadodara dairy corruption issue in which he is not involved at all. Subsequently, he decided to resign from the party," Chandrakant said.

Madhu, a four-time MLA, claimed it was he who had unearthed milk pouch-purchasing scam amounting to Rs 17 lakh after coming to power in Baroda Milk Dairy last year and reported it to the concerned department of the government.

He said this scam had taken place during the previous Congress rule in the Baroda Dairy.