Hyderabad,  Telangana Chief Minister K. Chandrasekhar Rao on Sunday dropped E. Rajender from his council of ministers after investigation by Medak District Collector found that he encroached land of farmers.

"On the advice of the Chief Minister of Telangana, the Hon'ble Governor, Telangana has dropped E. Rajender, Minister from the Council of Ministers with immediate effect," said a communique from the Raj Bhavan.

The development came on a day when Medak District Collector submitted his inquiry report to Chief Secretary Somesh Kumar. The report says that Jamuna Hatcheries, owned by Rajender, encroached 66 acres of assigned lands in Achampet and Hakimpet villages in the district.

The District Collector conducted an inquiry on the direction of the Chief Minister.

The Chief Minister on Saturday took over the medical, health and family welfare portfolio from Rajender after the land grabbing allegations by farmers.

The development came a day after he ordered inquiry by the District Collector into allegations against his cabinet colleague. He also instructed DGP, Vigilance, Purnachandra Rao to find out the truth on the allegations.

Chandrasekhar Rao ordered the probe hours after some farmers in Medak district submitted a complaint to him alleging that the Health Minister forcibly took over 100 acres of their assigned lands to start a poultry industry.

Eight villagers from Achampet and Hakimpet villages alleged that the minister and his followers had taken over their lands to start a poultry industry. They sought intervention by the Chief Minister and appealed to him to ensure that the assigned lands given to them by the government be restored to them immediately.

The same day Rajender addressed a news conference to deny the allegations and claimed that a campaign was being run for his character assassination. He said he was ready to face a probe even by a sitting judge or the Central Bureau of Investigation (CBI).