The AAP said Goa's Cooperatives Minister Deepak Dhavalikar made public statements that his ministry released advertisements in the Sanstha-owned newspaper.
"It is shocking to note that the government of Goa is officially handing over public money to such a radical organisation through its mouthpiece, the Sanathan Prabhat.
Also read: Sanatan Sanstha: What you need to know
"AAP Goa strongly condemns this financial support to this extremist organisation under the guise of 'newspaper advertisements'," the statement said.
Naik said the Congress as well as a section of the BJP leadership in Goa have demanded a ban on the Sanstha, which has its headquarters in Ramnathi town, 35 km from Panaji.
"AAP Goa demands that the government immediately stop releasing a single rupee of public money to such dubious organisations, and also put an immediate ban on its mouthpiece the Sanathan Prabhat, while beginning active monitoring of all activities of the Sanstha," Naik said.
Two cabinet ministers in the Laxmikant Parsekar government -- brothers Deepak and Sudin Dhavalikar -- have backed the Sanstha repeatedly.
On Wednesday, Deepak Dhavalikar said the Sanstha worked for "spirituality and propagation of Hindu religion" and that his wife found "peace" while performing 'sadhana' at the Sanstha headquarters.
Sanstha member Samir Gaikwad was arrested last week in connection with Pansare's murder, while another member, Rudra Patil, is absconding.