However, the party, which is eyeing to wrest power in the upcoming high-stake assembly polls, has cited no reason for the withdrawal of its demand.
"Yes, we have withdrawn it (this demand). There is no reason behind it (withdrawal). It is a party's decision," AAP's Human Rights Wing chief Navkiran Singh said today when he was asked whether the AAP has withdrawn its demand of transfer of the Punjab DGP.
On January 10, AAP had made serious allegations against Arora.
Party state convener Gurpreet Singh Waraich along with Navkiran Singh had sought from the Election Commission to transfer the DGP without further delay for "free and fair elections in Punjab".
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The party had apprehended that Arora would "influence" the election process if allowed to continue in his post.
"His continuation as head of police force would defeat the whole purpose of the Election Commission", Waraich had said.
AAP had also accused Arora of not only "serving his political masters in the SAD-BJP combine government but was also instrumental in clearing the charges of corruption against PPCC president Amarinder Singh at the behest of Sukhbir".
Waraich had also accused the Punjab DGP of "facilitating" the escape of gangsters from high-security Nabha jail at the "behest" of Sukhbir.
Arora, a 1982-batch IPS officer, had played a key role in fighting terrorism in Punjab in the late 1980s.