Sukhpal Singh Khaira, who resigned from the primary membership of the AAP, said Monday that his new outfit will fill the political space "lost" by the Aam Aadmi Party (AAP) and the Shiromani Akali Dal (SAD) in Punjab.
He also said that he would announce the name of his new political outfit on Tuesday.
Khaira, who has not resigned as MLA, dared the AAP leadership to get him disqualified under the anti-defection law.
Khaira, legislator from Bholath constituency, had quit the AAP on Sunday, six months after he was ousted from the post of Leader of Opposition of the Punjab Assembly.
"Both the SAD and the AAP have lost political space in Punjab. The AAP lost space because of wrong policies while the Akali Dal over sacrilege issues. To fill this vacuum and for the cause of Punjab, we are going to announce a new political party tomorrow," Khaira told reporters here.
"I have resigned from the primary membership of the party. They want me to leave the seat and again contest the election to test popularity. They are full of hatred and targeting me," he said.
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Khaira said the Punjab Democratic Alliance which was formed last month would meet later this week to a take a call on whether to contest the Lok Sabha polls or not.
The alliance which was launched last month in Patiala comprised the Lok Insaaf Party, BSP and suspended AAP MP Dharmavira Gandhi.
Asked how many MLAs were supporting him, Khaira said seven legislators had supported him in the interest of Punjab.
"But we do not want unnecessary bypolls in Punjab as the state is already under heavy debt of Rs 2.50 lakh crore. Crores of rupees are spent on elections that is why we are avoiding it," he said.
Meanwhile, AAP supremo and Delhi Chief Minister Arvind Kejriwal said the party was not formed to satisfy the greed of a few leaders who crave for post and power.
"The AAP was formed to get the country rid of corruption. Today, the performance of the AAP was gaining popularity worldwide and its performance was also being appreciated. The AAP is not meant for satisfy the greed of a few leaders who are after post and power," Kejriwal told reporters here.
"I always say who crave for any post or position, they should leave the AAP. The party and its ideology will get strengthened with such persons quitting," he said.
Lashing out at Kejriwal, Khaira accused him of not relinquishing the post of president of the AAP.
Khaira also sought an amendment in the anti-defection law, claiming it was "anti-democratic" and that only two-thirds members of a party could defect and not individuals.
He said the amendments in the Constitution regarding anti-defection was brought about by the Congress and the BJP, and the AAP was following it.