Atul Kumar Rai has announced its decision to step down as the chairman of the state-owned financial institution Industrial Finance Corporation of India (IFCI) following pressure from the finance ministry.

Rai had taken over one the charge of IFCI, which is one of the oldest financial institutions in the country, in 2007. Rai was in a dispute with the government after he opposed the government’s decision to take control of IFCI during the previous year and his tussle with other top company officials. He has been forced to quit his post just days after his close close associate and former CAG Vinod Rai retired as CAG.

The finance ministry had also tried earlier to remove him from his post over charges of mismanagement in the financial organisation. The Supreme Court had issued a notice in September, 2012 to the government over the reappointment of Rai following a petition that alleged that he was involved in corrupt practices. A parliamentary panel was seeking a CBI probe into his appointment into the matter in 2011 alleging that he hid facts.

The current chief of Industrial Development Bank of India (IDBI) R. M. Malla is likely to replace Atul Kumar Rai.