Mr Bhushan and Yogendra Yadav's sacking from key panels clears the way for their suspension or expulsion from the party, sources said.

The panel, they added, is expected to take up the complaint of "anti-party activities" against Mr Bhushan and Mr Yadav and recommend action against them.

The newly-formed disciplinary committee comprises Ashish Khetan, Pankaj Gupta and Dinesh Waghela, known to be loyalists of Mr Kejriwal.

"Only the Lokpal can appoint its successor... This is a Stalinist regime and only one man's writ (Kejriwal) will run large," Mr Bhushan said.

Admiral Ramdass, who was trying to broker peace between the two warring factions, was removed after he raised concerns about the internal bickering, growing mistrust and existence of "two camps" in the party.

Mr Bhushan and Mr Yadav, who claim they were pushing for greater transparency and internal democracy in the party, were voted out of the party's 21-member National Executive on Saturday following a stormy meeting.

This morning, AAP released a video of Mr Kejriwal's address at the meeting where he, without naming Mr Bhushan and Mr Yadav, accused them of back stabbing and asked the 250-odd members present to choose between them and him.

Moments later, the members voted out Mr Bhushan and Mr Yadav 247-8.

The two leaders alleged that the voting was scripted and took place amid hooliganism and fear. Calling the process a "murder of democracy", they did not rule out taking legal steps.