A division bench comprising Acting Chief Justice Manjula Chelloor and Justice A M Shifiq issued the directive on a petition by P G Mohandas complaining that the forum was receiving money from various sources unauthorisedly.
The state government informed the court that firm action will be taken against the activists of the forum.
Kerala-based PDP leader Madani has been arrested for alleged involvement in the July, 2008 Bangalore blasts that claimed two lives.