The resignation notice was given to Dr P Shingare, the Dean of J J Group of Hospitals.
The Maharashtra State Medical Teachers Association has been demanding that the government regularise all posts by giving the temporary teachers permanent cadre, time-bound promotions and pay scale, salary at par with other state governments like Karnataka, allow private practice and give allowance for non-practice.
The government had promised to fulfill their demands by September 30.
"Since the government failed to implement our demands as promised, we have given the notice of resignation which includes 70 divisional board teachers and 80 post graduate teachership," MSMTA president Dr Ram Raje said.
The government said demands of doctors will be placed before the next state Cabinet meeting.
Chief Minister Vilasrao Deshmukh had on Saturday said that the government had taken up the matter and promised medical teachers that something will be done soon, Shingare said.
Minister of State for Medical Education Suresh Shetty said, "We have already submitted a note to the government and the matter will be taken up in the next Cabinet meeting."
However, Raje said that the government was violating by-laws of both the Medical Council of India and Maharashtra University of Health Sciences by appointing teachers on contract, which should be stopped immediately.
The government has to fill up 258 vacant posts for lecturers, 239 for associate professors and 48 for professors, in the entire state. Of the sanctioned posts of 316 for professors, 170 are ad hoc and only 98 are regular ones, Raje said.
Similarly, of the total sanctioned 806 posts for associate professors, 312 are ad hoc while 289 are regular, For lecturers, the total sanctioned posts are 1,133 and 724 are on contract and only 151 are on regular posts, Raje added.