Only a grandchild of Samajwadi Party leader Mulayam Singh Yadav can become the party's president, there is no place for ordinary workers, Shah told a Bharatiya Janata Party gathering here.
He alleged that while the central government was sending money to Uttar Pradesh for developmental programmes and schemes, the funds were not being spent well.
"The money sent for you will never reach you," he said.
Shah labelled the merger of the Quami Ekta Dal with the Samajwadi Party and the later de-merger as a "desperate political drama" to arrest the sagging image of Chief Minister Akhilesh Yadav.
"If the goons were to be thrown out of the SP, the whole party will be left with no one," Shah said.
Shah also took on Congress Vice President Rahul Gandhi for seeking details of the works done by the Narendra Modi government.
"The Modi government is doing good work and we will present our report card to the people in 2019," he said.