Kaur, who had been at loggerheads with the SAD-BJP led government in the state over the development projects in Amritsar, also claimed that BJP workers were being harassed at the behest of Akali Dal and late RSS leader Jagdish Gagneja was against the continuance of the alliance.
She said she would not resign from the Assembly and continue to carry out development works in Amritsar East Assembly constituency.
"They told me keep my mouth shut and said funds would be released soon. I was told I should not worry if something wrong is happening. There is an alliance, you do not speak against it," she told reporters.
"99 per cent of BJP workers are being harassed at the behest of SAD. Nobody is listening to their grievances. We should have been told that an alliance means you do not have to open your mouth even if any wrongdoing takes place. You just watch, support the mafia, but do not raise your voice against it," she said.
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Kaur said the party "should have told us beforehand that we have to keep quiet even if we see scam, mafia raj and cover all sorts of scams" and that she did not join politics to keep mum on wrongdoings taking place in the state.
Late RSS leader Jagdish Gagneja was also against BJP continuing the alliance with SAD.
Kaur alleged that she was humiliated when she demanded
funds for development works. "I was humiliated...I went on hunger strike...The people they (BJP) favoured got everything," she said.
Asked about her future plans, Kaur said she "will sit with the people of Awaaz-e-Punjab, ask them about their plan and then take a call".
"There is no reason for (resigning from the Assembly) it. When you are an MLA, you can supervise work in your area. I do not want a by-poll in my constituency. I do not want that funds remained unutilised and are misused," she said, replying to another question.
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Kaur accused Chief Minister Parkash Singh Badal, his deputy Sukhbir Badal, Revenue Minister Bikram Majithia and former BJP Punjab chief Kamal Sharma of creating hurdles in executing development works in her constituency.
She alleged that they kept her husband away from Punjab politics, pressurised the BJP high command for "cancelling ticket from Amritsar seat for the 2014 Lok Sabha polls and brought Arun Jaitley here".
However, Punjab BJP chief Vijay Sampla rebutted the allegations levelled by Kaur. "At times, she deserved disciplinary action for her utterances. But we refrained from it," he said in Ludhiana.
Kaur also described former Punjab Congress chief Amarinder Singh as a "confused" leader.