Nair, former CPI state executive member, was among the two party functionaries whom the party held responsible for "flawed selection of the candidate" to Thiruvananthapuram Lok Sabha constituency in the 2014 polls.
There were allegations that a non-party member Bennet Abraham was selected as party candidate after receiving funds from him.
The party constituted a panel to look into the defeat of Bennet Abraham who was relegated to the third position with Congress' Shashi Tharoor securing a second consecutive victory and BJP's O Rajagopal ending up as runner-up.
The minutes of the meeting of the state secretariat and the council meet that proposed Abraham as candidate will be placed before the Lokayukta, he said."If any money has been received, party secretariat was responsible for it," he said.
Meanwhile, CPI leadership dismissed Nair's charges as 'nonsense'. "It is only the statement of a person against whom party has initiated disciplinary action," party sources said.