Party sources said Rajesh would be kept out of duties and organisational responsibilities.
The action was initiated following a directive from the Central leadership, the sources, who did not wish to be named, said.
The BJP state unit had come under a cloud recently after an internal party commission report surfaced in the media, which stated that a party functionary had allegedly received Rs 5.60 crore for getting Medical Council of India clearance to a private medical college at nearby Varkala.
The party had expelled R S Vinod, convener of the party Co-operative cell, whose name was mentioned in the report. (PTI)