Anwar had apologised to the IUML leadership following which, the party had yesterday decided to drop the disciplinary proceedings against her.
However, today it decided to remove her from the post of Vanitha League chief and appointed senior party vice-president KP Mariamma, a lawyer, to the post, IUML sources said.
Anwar had kicked up a storm by praising the BJP and saying that the saffron party was growing fast in Kerala and other states.
A red-faced IUML, a coalition partner in the opposition Congress-led UDF in Kerala, sought to distance itself from the comment and decided to seek Anwar's explanation after it triggered a controversy.
Anwar said she had not gone to take part in a BJP function. Instead, some local leaders of the saffron party had come to her house for a donation which she gave.
Earlier, Anwar had criticised the IUML for not fielding any woman candidate in the state Assembly polls last year.
She was also stopped from addressing the gathering at a Muslim Youth League state conference in Kozhikode in November last.
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