The student wing of Kerala's ruling Left took out a protest against the Governor.
Kerala Governor Arif Mohammed Khan has written to Chief Minister Pinarayi Vijayan, demanding the dismissal of Finance Minister KN Balagopal over recent remarks at a university, which he said were "seditious".
In his letter to the Chief Minister, the Governor alleged that Mr Balagopal delivered a speech at a campus in Thiruvananthapuram last week, seeking to "stoke the fire of regionalism and provincialism and undermining the unity of India".
According to reports, minister KN Balagopal had said at the function that "those who come from places like UP, may find it tough to understand universities in Kerala", recalling violent crackdowns on students by authorities in other parts of the country.
"Remarks of Finance Minister Shri KN Balagopal seek to create a wedge between Kerala and other States of Indian Union and project a false impression as if different States of India have different systems of higher education," Mr Khan said.
"Although there are others like Education Minister and Law Minister who have indulged in attacks on me, I wish to ignore them as they hurt me personally. But if I do not take cognizance of the seditious remarks of Shri KN Balagopal, it would be a grave omission of duty on my part," the letter said.
Saying that the Finance Minister has "ceased to enjoy my pleasure", the Governor directed the Chief Minister to take action "which is constitutionally appropriate".
The request was promptly turned down, news agency PTI reported, quoting sources in the Chief Minister's office. The governor's letter was also followed by a protest march by the student wing of the state's ruling Left outside the Raj Bhavan.
The exchange comes amid an ongoing tussle between the governor and the Left over the appointment of university Vice-Chancellors. An order by Mr Khan demanding the resignation of eight university heads currently remains on hold by the Kerala High Court.
Last week, the Raj Bhavan's media officer tweeted that the Chief Minister and Council of Ministers "have the right to advise the governor, but statements of individual ministers that lower the dignity of the office of the Governor, can invite action including withdrawal of pleasure".
Quoting the newspaper reports of October 19, the Governor alleged the comments made by Mr Balagopal and state Higher Education Minister R Bindu at a function organised at Karyavattom campus of the Kerala University were "clearly aimed at tarnishing the image of the Governor and lowering the dignity of office of the Governor".