East Delhi Mayor Neema Bhagat rejected the charge and accused him of "politicising" the issue instead of helping the cash-strapped civic body.
Bhagat met the chief minister at the Delhi Secretariat and sought release of funds, which she claimed were "pending" to the municipal corporation.
During the meeting, Kejriwal said the Delhi government has, till now, "released all funds" to the corporations which were supposed to be provided under the existing Delhi State Finance Commission.
"Kejriwal said the EDMC must do away with corruption to make it financially stable," the official said.
Also Read
The senior official said that during the meeting, Kejriwal also sought to know why the sanitation staff were not paid salaries despite the fact that the government has released "all funds due to the EDMC".
Bhagat, when later contacted, said Kejriwal instead of solving issues was "politicising the matter".
"But, instead of solving their problems, he (Kejriwal) accuses EDMC of corruption," the mayor said, adding, the meeting with the chief minister was "disappointing".
She said that during the meeting Kejriwal said that "his government can only release more funds if the Centre gives funds to it."
Bhagat was accompanied by Deputy Mayor Bipin Bihari Singh, Delhi MLA Om Prakash Sharma and two other members.
During the meeting, the chief minister asserted that the EDMC has many sources of income, but because of "corruption" its finances are in a mess.
Kejriwal said illegal hoardings and illegal parking must be curbed, which will increase the revenue of the civic bodies manifold.
Bhagat also apprised Kejriwal of 25 spots in areas falling under the PWD, which need immediate attention for desilting.
Recently, mayors of North and South Delhi Municipal Corporations had also met the chief minister seeking release of funds which they claimed were due to the respective civic bodies from the Delhi government, and to discuss desilting issues.
Disclaimer: No Business Standard Journalist was involved in creation of this content