This follows the disclosure of a video of him in compromising circumstances.
It's understood the images of Mr. Ali, a married father, came out of a sex chat through Skype that was posted on social media. Reports state he went to the police to report that he was being blackmailed after a woman posted intimate images he had shared with her.
Mr. Ali unsuccessfully contested the Barataria/San Juan seat for the PNM in last year's General Election.
He was later appointed a Government Senator on Wednesday September 23rd, 2015, at the start of the 11th Republican Parliament.
His two contributions in the Upper House came during the debate on the Appropriation (Financial Year - 2016) Bill, 2015 and the Strategic Services Agency (Amendment) Bill, 2016.
Mr. Ali was replaced in the Senate on Tuesday afternoon by Mr. Rohan Sinanan.
Senate President Christine Kangaloo said the President, acting on advice from the Prime Minister, appointed Mr. Sinanan as a Government Senator.
Mr. Sinanan is a PNM Deputy Leader and was the party's Campaign Manager in last year's election.
Mr. Imran Mohammed was appointed a Temporary Senator, replacing Dennis Moses who is out of the country.