Announcing her decision to quit, she said she also decided to step down as the Chairperson of National Advisory Council (NAC) of India's ruling United Progressive Alliance for the Common Minimum Programme.

The chairperson of the NAC accorded Gandhi, who had spurned the post of prime minister soon after Congress stormed back to power in 2004 parliamentary polls, the status of a cabinet minister.

Announcing her resignation, Gandhi told reporters, "Some people in the last couple of days have been creating an atmosphere that the government and parliament are favouring me. It has hurt me. I said earlier I have not come to politics for profit. That's why I have decided to resign from Lok Sabha and NAC chairperson post."

She however asserted she would run for office again from Rae Bareily constituency.

The resignation by Gandhi came in a little more than a week after actress Jaya Bachchan's membership of Rajya Sabha, upper house of Parliament, was disqualified on the grounds she had held the office of profit by being the Chairperson of Uttar Pradesh Film Development Corporation.

But the actress's disqualification triggered the debate whether other lawmakers, who had occupied or are occupying office of profit should be disqualified. Sources said there are 62 lawmakers who fall in this category.

Even Lok Sabha Speaker Somnath Chatterjee, who is a CPI (M) member, has been accused of holding office of profit. Prime Minister Manmohan Singh's government was understood to have decided on an ordinance to exempt 62 posts from the definition of offices of profit. This move, the opposition alleged, was a "ploy" to "bail out" Sonia Gandhi.

The government's move to introduce the ordinance had caused uproar in parliament on Wednesday, leading to the sine die adjournment. Neither Sonia Gandhi nor Somnath Chatterjee had attended the parliament on that day.

Opposition MPs led by former prime minister Atal Bihari Vajpayee had met President APJ Abdul Kalam on Wednesday seeking Sonia Gandhi's disqualification as an MP. They said the president forwarded the complaint to the election commission.

However, India's Chief Election Commissioner BB Tandon said he has not received any petition challenging Gandhi's Lok Sabha membership.

Since Jaya Bachchan's disqualification the Congress president had been under BJP attack demanding the same action against her for holding the office of profit by being the NAC chief and chairperson of various trusts.

The Leader of the Opposition in the Lok Sabha LK Advani said the president should not sign any such ordinance relating to offices of profit. He also said there cannot be two standards, one for Sonia Gandhi and one for Jaya Bachchan.