Gaurav Sharma has been expelled from the Labour Party.
Sharma was found to have "brought the party into disrepute", Labour President Claire Szabó said.
The expulsion is effective immediately.
It comes after Sharma on Tuesday announced his resignation from Parliament and his intention to form a new political party.
The New Zealand Council, Labour's governing body, had launched an investigation following a complaint from the Labour caucus over breaching its rules. Sharma had been expelled from the party's caucus on August 23.
Its investigation recommended the former MP should be expelled from the party for bringing it into disrepute.
Sharma "participated actively" in the investigation, providing oral and written accounts of his perspective, the council said.
He had requested extra time on Saturday to "document his perspective" on the investigation due to a bereavement in his wider family. He was granted that extra time, but the council noted the window closed yesterday with "no further documentation from Gaurav".
"New Zealand Council met this morning and made the decisions outlined above," the statement said.
The former Hamilton West MP's resignation from Parliament was effective from midnight Tuesday.
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