Minister of State for Home Kiren Rijiju said the Delhi Police is investigating the murder case of M M Khan and it is making "good progress".
Khan was allegedly murdered for refusing to take bribe from Delhi hotelier Ramesh Kakkar.
"The Delhi Police should be allowed to do an impartial probe. Let them complete the investigation. No political colour should be given to the case.
Rijiju's comments comes after Kejriwal had accused BJP MP Maheish Girri of being allegedly involved in the murder of Khan.
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"There is no question of putting political pressure whatsoever from anyone. Let the truth come out and guilty should be punished," he said.
"AAP should not jump the gun in demanding the LG be made a co-accused in M M Khan murder case. The central government has full faith in LG and Delhi Police for a fair investigation into the case," Rijiju said.
"His (Jung's) role is suspicious in the case. Why had he written to NDMC seeking action against Khan? We demand that the LG be arrested and sacked from his position," AAP's Delhi Unit Convener Dileep Pandey said at a press conference.
Asked whether it was proper for Delhi government to give a large number of advertisements at the cost of public funds, Rijiju said it was not proper to give advertisement just to improve a government's image.
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"AAP which is the ruling party of Delhi cannot make such frivolous accusations and attacks on the constitutional authority (LG)," he said.