Vadodara district BJP president Satish Patel, however, said he didn't exactly "shower" the money.
The clip showed him showering Rs 10 notes on the well-known folk-singer Kirtidan Gadhvi from a bucket.
Ranjan Bhatt, BJP MP from Vadodara, was also present at the event.
"The programme was held by Mahakali Yuvak Mandal on September 20, where I was just giving money to Kirtidan Gadhvi," Patel told PTI.
"I did not shower the currency notes nor I threw them in the air and the money which was given by the people will be utilised for social causes like cow-protection and treatment of ailing cows," he said.
On September 27, a video clip showing the BJP MP from Junagadh Rajesh Chudasama showering currency notes on people dancing at an event in Chorwad town had gone viral. But Chudasama defended himself saying it was a tradition.
Similar controversy had erupted in April this year when the BJP MP from Jamnagar Poonam Madam was seen in a video showering money at a Lok-Dayro (folk-song) programme.