State Congress Spokesman Narendra Saluja told PTI that as per the directives of the Congress high command, Parmar has been expelled from the party for six years.
After the November 25 polls' results, Parmar had accused Mistry of selling party ticket to a local Congress candidate in lieu of a huge sum.
Congress candidate from Indore-5 seat, Pankaj Sanghvi lost to BJP candidate and former Minister Mahendra Hardia by a margin of 14,418 votes.
The expelled member could not be reached for comments.