"The Board of Directors of the company on March 5, 2011 has noted and accepted the resignation of Shahid U Balwa, as Managing Director and also as director of the company in view of his preoccupations relating to certain investigations as per his letter of the same date," DB Realty said in a filing to the Bombay Stock Exchange.
The CBI had arrested Dynamix Balwas (DB) group Managing Director Shahid Usman Balwa in connection with the 2G spectrum allocation scam on February 8.
"The company continues its business in the normal course under Managing Director Vinod K Goenka with the guidance of the board," the filing added.
DB Realty added that it has also accepted the resignation of its another Director Chandan Bhattacharya with effect from February 18, 2011.
Reacting to the announcement, shares of real-estate company DB Realty declined by 15 per cent to a record low of Rs 100 apiece on BSE.