In a late night tweet, Ilmi said, "Was invited to speak at the National Defence College. Couldn't take media calls. I am not contesting from New Delhi or elsewhere, calm down folks."
Earlier, Kejriwal told reporters at a press conference that, "she (Ilmi) is a citizen of this country and is free to contest from anywhere she wants."
But hours after the press meet, Kejriwal took a swipe at Ilmi by re-tweeting one of her tweets, dated November 21, 2013 titled 'Hypocrisy, thy name is BJP'.
She had contested the 2013 Assembly polls from RK Puram and lost by a slender margin.
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AAP then wanted to pit her against Congress president Sonia Gandhi, but she refused. Rejecting her demand to contest from Delhi, she was finally fielded from Ghaziabad, from where she suffered a drubbing.
Ilmi quit the party lashing out at a "coterie" surrounding Kejriwal, just days after the party faced a drubbing in the Lok Sabha polls.
The former AAP leader also participated in Delhi BJP's 'Swachch Bharat Abiyaan', but did not join the party.