Member of 'Devpath', an outfit headed by local BJP leader Mukeshsingh Rajawat, abused Bhushan at the press conference, and snatched off the AAP cap the latter was wearing, while shouting "Kashmir belongs to us" and "Bhushan is a Pakistani agent".
Rajawat and some 50 of his supporters subsequently arrived at the spot and shouted slogans against Bhushan and waved black flags.
AAP candidate from Indore Anil Trivedi escorted Bhushan out of the hotel and took him away.
AAP workers also staged a sit-in to protest the incident.
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Bhushan had faced violent protests earlier too after he allegedly advocated a referendum in Kashmir.
Before leaving, Bhushan told reporters that "BJP has kept these goons for carrying out this kind of activities. It shows its fear and desperation, because for the first time it has been challenged by a group of honest persons".
He also claimed that his statement on Kashmir was presented in a wrong manner.
On one hand BJP leaders said that Kashmir is an inseparable part of India but when someone talked about Kashmiris, they termed him as Pakistani agent, he said.