Bersatu Youth has referred leaders involved in profiteering from Ramadan bazaar lots issued by the Kuala Lumpur City Hall (DBKL) to the party's disciplinary committee.
Bersatu Youth information chief Ulya Aqamah Husamudin said the party wing had also lodged a police report and is in the midst of lodging another report with the MACC.
"Bersatu Youth will not tolerate alleged misappropriation or abuse of power in the recent DBKL bazaar lots issue which was linked to the Bukit Bintang Bersatu Youth chief.
"Bersatu Youth would like to remind all Bersatu members, particularly the youth wing to distance themselves from such activities
"Act in accordance with the party constitution which clearly abhors corruption, misappropriation and abuse of power," he said.
Ulya Aqamah said the party will not hesitate to take action if any wrongdoing was discovered.
"There is no place for corrupt practice in this new Malaysia. No corruption will be covered up by this beloved party," he said.
Bukit Bintang Bersatu Youth chief Mohd Noorhisyam Abd Karim was accused of misusing political connections to secure rights to 80 bazaar lots in Jalan Masjid India and then renting it out for as high as RM5,000 per lot, making up to RM400,000 in the process.
DBKL had only charged him RM6,238 for all 80 lots. Noorhisyam had denied scalping the traders or collecting more than the cost as payment.
The local council said it initially did not want to issue the bazaar lots along Jalan Masjid India due to congestion but had only done so after DAP's Bukit Bintang MP Fong Kui Lun issued a letter of support.
Fong said he had issued the letter of support after he was told no payment would be collected and that it was to help traders who could not get licences to participate in the Ramadan bazaar.
However, the move had also raised questions over the use of political support letters to influence bureaucratic decisions, a common practice under the previous BN government.