The move came as Vellu, who has been the party chief for 29 years and is currently in his 11th term, nominated G. Palanivel as the deputy president and a bunch of loyalists for the post of vice presidents in the party poll due in September.
Some critics of Vellu have said they would stay on in the contest.
A constituent of the ruling coalition Barisan Nasional (BN), MIC is Malaysia's oldest party that claims to speak for the two million-plus ethnic Indian community.
A bulk of it is Tamils who settled here during the British era and forms about eight percent of the country's multi-racial 28 million population.