The Home Ministry has conveyed its decision in this regard to the governor as he has been named in the case, official sources said, adding that his position has become untenable in view of the FIR.
"A report has been sought from the state government and Governor's office on the entire matter," they said.
However, when contacted, Raj Bhawan spokesperson said in Bhopal, "There is no communication in this regard from Delhi."
Yadav was named in an FIR registered yesterday by Special Task Force (STF) probing the multi-crore Madhya Pradesh Professional Examination Board or Vyapam scam under various sections of IPC, including 420 for cheating.
Yadav had allegedly recommended the names of five candidates for recruitment as forest guards to the top officials of MPPEB which conducted the examination.
The registration of FIR comes following a hearing in the matter in the Madhya Pradesh High Court on February 20 when a division bench comprising Chief Justice A M Khanwilkar and Justice Alok Aradhe had said, "the STF is free to proceed against the high dignitary.
The MPPEB scam is a massive admission and recruitment scandal involving politicians and some senior and influential state government officials and the Governor's role in it had come under the scanner since the arrest of his Officer on Special Duty (OSD) Dhanraj Yadav in MPPEB's Pre-Medical Test (PMT).
His son Shailesh Yadav's name too had cropped up during the investigation when an accused had alleged he was paid money for recruitment of contractual teachers.
Yadav, a former Uttar Pradesh Chief Minister, was appointed by the Congress in 2011 and his term was set to end in September 2016.
Anandiben Patel got transferred from Madhya Pradesh to crucial Uttar Pradesh, and replaces Ram Naik as Governor there. Lalji Tandon, who was the Governor of Bihar so far, will replace her in Madhya Pradesh.
BJP MLA from Ghosi Fagu Chauhan has been appointed as the new Governor of Bihar. His exit from the Uttar Pradesh Assembly will mean another bypoll.
Jagdeep Dhankar, a senior BJP leader from Rajasthan, goes to the all-important West Bengal as Governor. He will take over the state at a time when its Trinamool Congress-led government is at loggerheads with the Bharatiya Janata Party (BJP) government at the Centre.
R.N. Ravi, who was the Centre's points person in the Naga peace talks and even signed the peace accord on the government's behalf, has been appointed as the Governor of Nagaland.
Ravi is also one of the three deputy National Security Advisors (Internal Affairs), and his move to the Nagaland Raj Bhawan creates a vacancy in the National Security Council (NSC) too.
Prior to this appointment, Tandon (84) served as the governor of Bihar.
Madhya Pradesh High Court Chief Justice Ravi Shankar Jha administered the oath of office to Tandon in the presence of Chief Minister Kamal Nath, state ministers and bureaucrats, a Raj Bhawan Official said.
Tandon replaced Anandiben Patel, who was appointed as governor of Uttar Pradesh recently.