In 1969, the open conflict between the Syndicate and Indira Gandhi became apparent. The death of President Zakir Hussain that year led to a vacancy in the position of President of India. Despite Mrs. Gandhi's reservations, the 'Syndicate' successfully put forth her enduring adversary and the then-Speaker of the Lok Sabha as the official Congress nominee for the upcoming Presidential elections.

Which of the following decision taken by Indira Gandhi led to the resignation of Morarji Desai (then Deputy Prime Minister and Finance Minister) from the government?

Both 1 and 2

Indira Gandhi e also announced several big and popular policy measures like the nationalization of fourteen leading private banks and the abolition of the ‘privy purse’ or the special privileges given to former princes. Morarji Desai was the Deputy Prime Minister and Finance Minister. On both, of the above issues serious differences emerged between him and the Prime Minister resulting in Desai leaving the government.