MIC Youth chief C Sivarraajh said Putrajaya would do better helping local Indians who are stateless than Indian national and Islamic preacher Zakir Naik.
"Giving PR (permanent residency) to Zakir Naik was the last thing the government should have done.
"The Malaysian government should think proactively to resolve the issues of stateless Indians and red identity cards as soon as possible," he told Malaysiakini.
A Mumbai special court had last Thursday issued a warrant of arrest against Zakir.
He is being sought by India's Enforcement Directorate for a criminal case involving money laundering.
Zakir has been a controversial figure due to his sermons, which some has accused of promoting extremism, which he denies.
Sivarraajh said Putrajaya should extradite him should India put in a request.
"The Malaysian government should send him back to India if there is an official notice or warrant from the Indian government to extradite him for investigation," he said.
Sivarraajh said Zakir was a divisive figure and national interest should come first.
"Zakir will create disunity among us... Malaysia should come (first) prior to anything (else)," he said. -Mkini