Jopalli Krishna Rao, Dr Rajaiah and S Sathyanarayana tendered their resignations to Andhra Pradesh Congress chief B Sathyanarayana.
Charred bodies of Sarika and her three children, who died on the spot due to burn injuries were recovered on Wednesday.
Celebrations have begun in Hyderabad and all across Telangana as India's 29th state was born at the stroke of midnight.