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Congress leaders wasted no time in accusing the ruling Bharatiya Janata Party (BJP) of resorting to panic-driven tactics to undermine the opposition.
The move, the party's top brass said, not just impacted the Congress but democracy in India.
Ali, who is the sitting MP from Amroha in Uttar Pradesh, was suspended by the BSP for anti-party activities.
Sources said the party's CEC would also discuss and finalise the party candidates.
Gandhi alleged that funds acquired through this scheme were used to fragment parties like the Shiv Sena and NCP, and orchestrate government turnovers.
Terming the act anti-constitutional, the CM pointed out that it would treat Muslims as second-class citizens.
TN Prathapan has been named as the new KPCC working president.
The scheme called Mahila Nyay was announced by Rahul Gandhi at Dhule in Maharashtra.
Hitting out at the INDIA bloc, the home minister said it is an alliance of only dynastic parties and the aim of its leaders is to promote their families.
Kamal Nath's son Nakul Nath will contest from Chhindwara and Ashok Gehlot's son Vaibhav from Rajasthan's Jalore.