Damania, known to be close to Delhi Chief Minister Kejriwal, lashed out at the party leadership saying she had backed the AAP chief for "principles" and not "horse-trading".
"I quit...I have not come into AAP for this nonsense. I believed him...I backed Arvind for principles not horse-trading," she tweeted.
A senior leader from Maharashtra, Damania had unsuccessfully contested from Nagpur constituency against Union Minister and senior BJP leader Nitin Gadkari whom she had accused of corruption.
Former AAP MLA from Rohini, Rajesh Garg alleged that Kejriwal had spoken about breaking the Congress and forming the government with the support of their MLAs in Delhi last year. Garg also circulated an audio clip of a purported telephonic conversation of Kejriwal to back his allegations.