Uttarakhand Finance Minister Premchand Aggarwal on Sunday resigned from the Cabinet, weeks after his remark in the assembly on people from the state's hill regions sparked protests.

Aggarwal, who held key portfolios, including finance and parliamentary affairs, submitted his resignation to Chief Minister Pushkar Singh Dhami at his official residence, an official statement said.

Aggarwal, during the budget session in February, reacted angrily to a comment directed towards him by Congress MLA Madan Bisht and said he had not fought for Uttarakhand's statehood to see a day when a dichotomy would be made between 'pahadi' and 'desi'.

He had also uttered an objectionable word during his argument with the opposition MLAs. His remark sparked anger among the people, especially those from the state's hill areas.

The minister had expressed regret over his remark and the BJP's state leadership also summoned and instructed him to exercise restraint. 

The development Aggarwal had stoked a controversy with his remark during the budget session of the House late last month, leaving people from the state's hill areas in anger. His comment also trigerred protests and burning of his effigies in the state.