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The source said that Sivaraj, who was appointed as a senator earlier this year was removed after allegedly hoping to challenge party president Tan Sri SA Vigneswaran for the top post.
"He was recently informed about his removal from the CWC lineup.
Sivaraj is now an ordinary MIC member," the source told Sinar Daily.
Sivaraj, the former Cameron Highlands MP, was appointed as a committee member at the Malaysian Indian Community Transformation Unit (Mitra) in April.
The 47-year-old has been a member of the party since the early 2000s.
Another source said he hopes that Sivaraj will not be removed from the position as he was a asset to the party. "He could be helping the community even more by being in the CWC," he said,
MIC party elections are expected to be held next year during which delegates will choose their president for the next three years.
Vigneswaran has been leading the party since 2018.
Sinar Daily is contacting Vigneswaran for comments.