The Delhi State Election Commission (SEC) had asked the AAP to file a reply over a complaint by Gupta in this regard.
The poster, seen in many parts of the city, carries photos of both Chief Minister Arvind Kejriwal and Leader of Opposition Gupta and asks voters as to who they would prefer to hold the reins of the municipal corporations.
"All charges levelled against us are baseless. Gupta is the Leader of the Opposition and all charges by him are politically motivated. We have not violated any Model Code of Conduct," Pandey said.
If the BJP leader found his picture on the posters objectionable then he should "send his photo, which can be used for ad campaign", he said, adding, "Gupta's photo, which was used in the campaign, is commonly found on the Internet."
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In his complaint to the SEC, Gupta had said, "The posters show a smiling face of Kejriwal while depict me in a distorted and villainous way."
Demanding that the Election Commission get the posters removed and take action against the AAP, the BJP leader had said, "These are elections and not a beauty contest to be fought on photos of leaders."
Elections to all three civic bodies - North, East and South Delhi Municipal Corporations - will be held on April 23. Counting of votes will take place on April 26.