The fledgling AAP stunned major parties in Delhi where its chief Kejriwal emerged the giant killer defeating Sheila Dikshit in her own turf - New Delhi constituency - by a huge margin of 25,864 votes.
"This is not my victory... It is a victory of people of New Delhi constituency and victory of democracy," said Kejriwal after defeating Dikshit.
Earlier, Dikshit resigned as Delhi Chief Minister as the BJP inched towards wresting power in Delhi after 15 years. The Congress was pushed to the third position with a single digit tally by debutant AAP, which has made a dent in strongholds of the ruling party.
Sheila Dikshit suffers ignominious defeat
"Bewakoof hain na (we are idiots, right)", retorted Chief Minister Sheila Dikshit when asked if her party failed to read the mood of the city which it had ruled for 15 years.
Dikshit, who resigned from the Chief Minister's post after Congress' drubbing, said her party will analyse what went wrong in the election.
"We accept our defeat and we will analyse what went wrong," she told reporters at her residence during a brief appearance after sending her resignation to Lt Governor Najeeb Jung.
"We respect what the people of Delhi have decided and thank them for supporting us for last 15 years," she said.
Her remarks came in the backdrop of her party being routed in the polls.
The AAP made a strong debut in the election eating into Congress' votebank in the city while pushing the ruling party to the third position.
Born following the civil society movement against corruption by Anna Hazare, AAP made a strong dent into Congress' support base.
Dikshit, who led Congress to three successive victory since 1998, faced the ignominy of suffering a crushing defeat at the hands of Arvind Kejriwal in New Delhi constituency.