BJP president Nitin Gadkari on Sunday suspended Rajya Sabha MP Ram Jethmalani from the party and referred his case to the party's parliamentary board that meets on Monday.
The action came after Jethmalani said "nobody has the guts to take action against me".
Making the announcement, spokesperson Shahnawaz Hussain said the MP had disregarded the party line on Ranjit Sinha's appointment as the next CBI chief.
Jethmalani had criticised the party's opposition to the appointment and also demanded Gadkari's resignation for alleged business irregularities.
Senior BJP leaders Sushma Swaraj and Arun Jaitley had opposed Sinha's appointment, saying the government should have waited as the report of the select committee on the lokpal bill had recommended that CBI directors be chosen through a collegium and not at the Centre's discretion.
Jethmalani implied the attack was instigated by a rival aspirant to the post and had welcomed the PM's move.
"We were concerned only and only with institutional reforms. Our suggestion wasn't person-centric," Jaitley said.
Mumbai police commissioner Satyapal Singh, senior lawyer Ram Jethmalani and author Jitendra Dixit are seen at the launch of 26/11, Veh 59 Ghante at Press Club of Mumbai. HT/Anshuman Poyrekar
Jethmalani received support from party MP Shatrughan Sinha, who said, "The appointment was done in a fair and transparent manner."