He has been replaced with Negeri Sembilan MIC chief T Rajagobalu.
Murugesan, who was appointed by the president, had irked Samy Vellu after he openly criticised the latter for using his presidential powers to sack four party members.
In an immediate response, Murugesan told FMT that it is the president's prerogative to appoint and sack the secretary-general.
"I stood up for what I believed in, I stood up for the party and its members.
"I was ready to face the consequences and this (his removal) is the consequence," he said.
“I would also like to thank the president for allowing me to contest for the Subang parliamentary seat (in the 2008 general election) and to serve the party as secretary-general.
“I still stand by what I said,” he added.
'I will continue to serve the party'
Murugesan also said that his removal from the post would not discourage him from serving MIC in his capacity as a Central Working Committee (CWC) member.
“I would also like to congratulate Rajagobalu on his appointment and wish him all the best,” he added.
Yesterday, Samy Vellu said Murugesan should have defended the party in a time of crisis.
Murugesan had disagreed with the president's decision to axe former MIC Youth deputy chief V Mugilan, CWC members KP Samy and G Kumar Amman and Petaling Jaya division chairman V Subramaniam.
The former secretary-general had stressed on the importance of tolerating dissent, saying that invoking the presidential powers to sack a member should be the last and not first option.
Meanwhile, Samy Vellu has appointed state assemblyman V Mogan as the new Negeri Sembilan MIC chief and A Ganesan as his deputy.
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