JD(U) president Sharad Yadav confirmed the expulsion of Ali, who is the candidate from Sheohar Lok Sabha seat in Bihar, over phone from his constituency Madhepura and said that he had been expelled for life.
However, Yadav refused to give details of Ali's expulsion beyond merely saying that he was a "kharab admi" (bad person).
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He said JD(U) would replace Ali with another candidate in Sheohar parliamentary seat soon.
Shabir Ali, who was denied a Rajya Sabha renomination recently, praised Narendra Modi's policy attracting the wrath of the party.
He was among three Rajya Sabha members of JD(U), including Shivanand Tiwari and bureaucrat-politician N K Singh, who were denied renomination to the Rajya Sabha last month and were asked to contest Lok Sabha election instead.
While the two others had backed out from contesting polls, Ali had agreed and was allotted party ticket from Sheohar seat.
Ali had come to the JD(U) from Ramvilas Paswan's LJP in the midst of his Rajya Sabha term on expectation of getting renomination.
Ali came down heavily on the party alleging that big leaders were surrounded with "sycophants" who would lead the party to ruins.
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