Gurpal Virdi was a Labour candidate for the Cranford ward in west London and has now been suspended pending the outcome of a court case next month.
The former Scotland Yard police officer is accused of indecently assaulting a boy nearly three decades ago and has been summoned to appear before Westminster Magistrates Court on May 30.
Despite the fact he will no longer be supported by the Labour party, the 55-year-old said he will still stand in the upcoming local elections.
A spokesperson from the London region Labour party, said: "The action has been taken following disclosure that Mr Virdi has been summoned to appear in court on a matter on which we understand he believes he will be cleared of any wrong-doing.
"However, given the circumstances, the Labour Party can no longer support Mr Virdi as a Labour candidate for Cranford ward in next month's elections."
The official charge against him was released by the Scotland Yard last week.
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