Reacting to Yadav's claim that he formed the party and the real JD-U was with him, Paswan said: "One's power matters in the politics and JD-U leader and Nitish Kumar had that influence today".
"He [Sharad Yadav] has not been removed from the JD (U), only replaced with RCP Singh [as party leader in the Rajya Sabha]".
On Friday, while talking to the reporters outside the parliament, Nitish Kumar had said, "As far as party is concerned, the party has taken its decision. The original JD (U) in association with secular forces would form a government after next general election". He said the action was taken against Sharad Yadav after he was found indulging in activities not in tune with the party line.
He refused to comment on the JD-U decision to replace him as the parliamentary party leader.
In a separate statement, he had also announced that he will meet PM Narendra Modi to talk about development and other issues in Bihar.
At a press conference, he also lashed out at JD (U) rebel Sharad Yadav and RJD chief Lalu Prasad, saying the former was a leader without a base while Prasad was using secularism as a cover to hide his and his family's corruption.
A meeting of 16 opposition parties convened by Sonia Gandhi on Friday made a decision to extend their cooperation beyond the Parliament floor. "I continue to stand for the 'gathbandhan'", he had said.
Speculation swirled over his remarks that the party could suspend him.
"They say I was removed from the parliamentary party because I attended a meeting of opposition parties but I did so when Sharadji, who was then our parliamentary party head, asked me to go there".
The Sharad Yadav faction on Sunday claimed that it has support of JDU's 14 state units, ahead of the party's national executive next weekend to formally join the NDA.