The AAP said it took the step due to the national council member's "repeated involvement in anti-party activities and his failure to respond to the show cause notice served to him".
Upadhyay also reportedly failed to respond to the show cause notice served to him.
Last month, Ashwini Upadhyay, prominent member and convenor of the legal cell of the party, who turned rebel, callled Arvind Kejriwal as a 'liar' and a 'CIA agent', as he was not offered the ticket to contest LS polls.
He had also accused Kejriwal of "diverting from real issues".
"This man is a liar. He tells lies. Initially, corruption, communalism, VIP culture, dynasty politics rule and caste-based politics were main issues of AAP, but now compromises are being regarding these issues", he had claimed. (Read more)