The AIMPLB had appointed a committee to recommend its course of action after Nadwi expressed divergent views on the Ayodhya issue.
"The committee has announced that the AIMPLB Board will continue with its old stand that Mosque cannot be gifted, sold or shifted. Salman Nadwi has been expelled because he went against our unanimous stand," IMPLB spokesperson Qasim Ilyas said after a meeting.
"The Babri case is not about 'Aastha'. It's about land ownership. We believe in our judiciary system," the board said.
"The board has always welcomed dialogue on Babri Masjid. Several attempts failed in the past. Now, Board will wait for the court verdict and will accept it be it in its favor or against," it added.
Salman Nadvi, a prominent Muslim scholar, with other leaders had met the Art of Living founder Ravi Shankar and expressed support for an out-of-court settlement of the Ayodhya dispute and. He also supported AOL's proposal of shifting the Masjid outside to another place.
"The atmosphere should be good (between the two communities)....There is permission for this in the Sharia. Among the four schools of (Islamic) thought, there's a Hanbali school of thought which says a mosque can be shifted," Nadwi had said.
"We can shift the mosque. A grand mosque can be built... where a university can also be set up," Nadwi added.
What Salman Nadwi has proposed was originally the idea his grandfather Maulana Ali Mian Nadwi, who in the 90s claimed to have convinced the then top Hindu clergy for an out of the court settlement. Ali Mian was the topmost Muslim scholar of his era.
When Ali Mian went to the AIMPLB with his proposal, he was criticized by the Muslim board, which rejected his idea.
Maintaining its stand, the AIMPLB had on Saturday said there is no change in its stand on the Ayodhya issue as "once a masjid is built, till eternity that will be a Masjid".