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Jaleel has sent his resignation to the chief minister and it has been forwarded to the governor, sources in the Chief Minister’s Office said.
The development was also confirmed by the minister in a Facebook post.
The resignation comes a day after he moved the Kerala High Court seeking a stay on the Lokayukta order.
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The bench had held that the allegation of abuse of power, favouritism and nepotism against the minister was proved.
The Lok Ayukta verdict was on a complaint filed by a Muslim Youth League leader in November 2018, alleging that Adeeb, a cousin of Jaleel, was appointed general manager in the Kerala State Minorities Development Finance Corporation, flouting rules.
Adeeb was the manager of a private bank when the appointment was made.