The party workers in Jajpur, the home district of Ghadai, burnt effigy of the former BJD vice-president and demanded his expulsion from the regional outfit.
A number of newly elected MLAs also gathered in the state capital and staged a demonstration demanding action against Ghadai before Patnaik was expelled.
Ghadai's contemporary and another BJD vice-president Damodar Rout said the former Finance minister should have learnt a lesson from the Pyari Mohapatra episode.
Welcoming Patnaik's action, senior BJD leader and Industries minister Debi Prasad Mishra said "The vice-president of the party (Ghadai) should not have said something unpalatable against the party president (PatnaiK). The party has given him a lot. His son is a MLA and Ghadai himself worked as the Finance minister for more than 7 years.