At a resort on the outskirts of Delhi, around 250 AAP leaders voted Mr Yadav, Mr Bhushan and two others, out of the party's National Executive.
"It was murder of democracy," said Mr Yadav, alleging that "bouncers" dragged his supporters out of the meeting so that Mr Kejriwal's supporters could prevail. Mr Bhushan alleged "goondagardi (hooliganism)."
AAP rubbished their allegations and said 247 of 311 members who attended the meeting voted to remove the rebels for anti-party activities.
Mr Kejriwal, chief minister of Delhi, did not vote and left after making an hour-long speech.
AAP's image has been dented, admitted party leader Ashutosh. The infighting has hit India's newest party just after it took power in Delhi following a record poll victory
Sources say the party's disciplinary committee is expected to take a call soon on the future of Mr Yadav and Mr Bhushan, who are only ordinary members now. Mr Yadav is also no longer chief spokesperson of the party and Mr Bhushan, not a part of its disciplinary committee anymore.
This morning, Mr Yadav sat on a protest outside the meeting venue, alleging that "legitimate members" were not being allowed inside.
On Friday, a secretly-taped phone conversation was leaked, in which Mr Kejriwal is heard abusing Mr Bhushan and Mr Yadav and threatening to exit the party with his 67 lawmakers from Delhi. "Any other party would have thrown them out," Mr Kejriwal can be heard saying to a supporter.
Mr Yadav and Mr Bhushan claim they are being forced out of the party for demanding more transparency and internal democracy.
AAP says 10 days of negotiations have failed to bridge the gap that emerged after the party's disastrous national election debut last year.
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