In a letter to party's National Convener Arvind Kejriwal, Agarwal, who has been associated with the party since its founding days, said that he joined the party for strong principles, but the goals for which it was created for are getting lost.
"The movement seems to have become directionless causing doubts in the minds of people and even people like me who are today feeling the party is functioning like a private company.
The National Executive Committee is the second most important committee in the party after the Political Affairs Committee.
Confirming Agarwal's quitting, party's national spokesperson Deepak Bajpai said, "He never raised these issues at party forum. Had he done, we would have addressed the issues."
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He said that the party learnt about his resignation through the media.
On one hand, when new people are joining the newly formed outfit, some members who have been associated with the party since its inception days are quitting.
Former AAP leader Madhu Bhaduri, a former diplomat, quit the party and condemned the Khirki extension case in which Somnath Bharti, then Delhi's Law's Minister, undertook a midnight raid on Ugandan women's residence.
Another National Council member Ashwini Upadhaya had also accused the party of "parachuting" candidates and deviating from its goals.