Rallying behind its senior leader, BJP state president Raosaheb Danve said the allegation against the minister was baseless and ruled out his resignation from the cabinet.
Danve also rejected the suggestions that Khadse is a victim of the infighting within the party and of lacking rapport with Chief Minister Devendra Fadnavis.
Noting that she was surprised at the speed with which Mumbai Police gave a clean chit to Khadse, AAP leader Preeti Sharma Menon said her party would wait and watch for a few days and will move the court if needed.
"We trust Mumbai Police but we are really surprised at the speed of the clean chit given to the minister. The charges are serious and deserve a through investigation," Preeti, a national spokesperson of AAP, told PTI.
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"His number received several calls from Dawood Ibrahim's wife Mehjabeen Shaikh's number between September 4, 2015 and April 5, 2016," Preeti claimed and asked police to investigate the matter.
AAP, by procuring a copy of the purported bills obtained through an "ethical hacker", had claimed that the particular number was "active" till last month and the last generated bill was for Rs 683.22 as on April 23 which was dispatched to Khadse's home address in Muktainagar tehsil in Jalgaon district of north Maharashtra.
Khadse yesterday got a clean chit from police, who said no calls were made or received on his phone from Dawood's as claimed by AAP.
Fadnavis also termed the charge against his colleague as "unsubstantiated".