"Alam has been suspended with immediate effect," party President Sharad Yadav said following a decision at a meeting attended by Chief Minister Nitish Kumar and other senior leaders.
Earlier in the day, Kumar broke his silence over Alam issue saying nobody is above law.
"Be it MP or MLA nobody is bigger than law. Police has freedom to act lawfully against those breaking law," Kumar had said.
Alam, son of RJD MP Mohammad Taslimuddin and third term MLA from Jokihaat in Araria district, has been summoned by police to appear before GRP Patna today to record his statement in connection with the incident.
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The MLA was allegedly travelling without ticket and was drunk. A footage of the purported incident was also aired by the media.
Bihar JD(U)President Vashisht Narayan Singh said that the decision to suspend the MLA was taken "due to his wrong and improper conduct".
Noting that JD(U) has always promptly taken action on any complaint against its partymen for "improper conduct", Singh said, "We are convinced after seeing the footage and hence we have decided to suspend him.
The CM said that the Jokihaat MLA had contacted his office on January 18 and he was given time to meet him on January 19.
"But, he did not turn up which made it clear 'Mamala kuch hai' (there is something fishy)," he said.
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Vashisht Narayan Singh, who took a high moral ground on the issue, also indicated that action can also be taken against another party MLA Bima Bharti, who was in news for allegedly freeing her gangster husband from police custody in Purnia few days back.
Singh said the party has been sticking to its stand about the rule of law and its decision on Alam is a proof of its commitment.