The decision was taken by its high-powered Political Affairs Committee (PAC) chaired by Chief Minister Arvind Kejriwal.
"Mishra has been suspended from the party's primary membership," a source present at the ongoing meeting said.
The decision comes a day after Mishra levelled allegations that Kejriwal had taken Rs 2 crore in cash from Delhi Minister Satyendra Jain.
Mishra was removed from the post of water minister on May 6.
Earlier on Monday, Mishra had dared the party to sack him even as he fired a fresh salvo at Kejriwal, alleging that a Rs 50 crore deal was made for the AAP chief's brother-in-law.
He also submitted documents to the Anti-Corruption Branch (ACB) against Kejriwal in connection with the water tanker scam and said he has sought an appointment with the Central Bureau of Investigation (CBI) on Tuesday to register a complaint.
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