The recommendation to cancelling his membership would be made to the chairman on Wednesday. A motion would be introduced in Parliament and his membership would be cancelled after voting .
The committee also rejected his resignation as it was a scanned copy of the letter. According to protocol, the letter should be handed over in person or through a messenger.
baron Vijay Mallya, facing a case of loan default of over Rs 9,400 crore, resigned from Rajya Sabha, a day before Ethics Committee of the Upper House was set to recommend his expulsion.
In his resignation letter to Rajya Sabha Chairman Hamid Ansari, he said he does not want his "name and reputation to be further dragged in the mud".
"And since recent events suggest that I will not get a fair trial or justice, I am hereby resigning as a member of the Rajya Sabha with immediate effect," Mallya said in the letter.
He also referred to the letter written to him by the Chairman of the Ethics Committee of Rajya Sabha Karan Singh and said he had replied to Singh.
This is Mallya's second term in Rajya Sabha and it would have otherwise come to an end on July 1.
Ethics Panel of the Upper House, which had taken up the matter, had unanimously decided in its April 25 meeting that Mallya should no longer remain a member of the House and was planning to recommend his expulsion in its next meeting on May 3.
At the same time, the panel had decided to give Mallya one week time to explain his conduct.
In a step closer to initiating his deportation, the government had over a week ago revoked the passport of Mallya, who is believed to be in the UK after leaving India on March 2.