Siroya, an aide of former Chief Minister and Karnataka Janatha Paksha supremo B S Yeddyurappa, in an open letter had alleged that Advani had compromised on corruption whenever it suited him.
BJP state unit President Prahlad Joshi today suspended him from the party with immediate effect and relieved him from the post of treasurer.
The party dismissed Siroya's allegations against Advani as "false" and "baseless".