Calling the allegation totally "defamatory", AAP said the BJP has been making wild allegations against the party leaders and that there was not an iota of truth in the charges levelled by Gupta.
"The allegations are totally baseless, false and defamatory. We may take legal action against Gupta," a senior AAP leader said.
Earlier in the day, addressing a press conference, Gupta, who is the Opposition leader in Delhi Assembly, alleged that Aftab Siddiqui, who has been arrested on rape charges, had "close relations" with senior AAP leaders.
According to police, 23-year-old Aftab has been arrested for the alleged rape of a married woman over a period of time in west Delhi's Paschim Vihar area.
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Aftab has however claimed that he had recently given his computer to a local shop for formatting, and the owner of the shop had allegedly copied the video and later distributed it. However, these claims are yet to be verified, police said.