Odisha CM Naveen Patnaik on Wednesday suspended BJD MP Baijayant 'Jay' Panda from primary membership of the party for indulging in "anti-party activities".
According to reports, there are allegations of "monopolistic utilisation of MPLAD funds" by him.
BJD Vice President and Minister Surya Narayan Patro made the announcement at a press meet in Bhubaneswar.
Patra alleged that Panda was acting against the interests of the party soon after the party refused his suggestion to propose his name for the chairmanship of the Lok Sabha Finance Standing Committee.
Panda, 54, responded to the development on Twitter, saying he was "shocked" and denying the charges against him as "false and baseless."
In a brief statement, Panda said he was "gravely disappointed" that Chief Minister Patnaik didn't see through the conspiracy against "against me by a coterie led by an IAS officer, now controlling the party."
He also said all allegations against him are false and baseless. "I vehemently deny the allegations against me," he said.