Kapil Mishra, who was yesterday sacked as minister, alleged he was an "eyewitness" to health and PWD minister Satyendar Jain handing over Rs two crore to Kejriwal.
Mishra also claimed Jain had told him in private conversation that he had "settled" a Rs 50 crore land deal in favour of a relative of the chief minister.
The bombshell prompted calls from the BJP and Congress for Kejriwal's ouster, but AAP stood solidly behind its leader, insisting there was no merit in the allegation and that "even his (Kejriwal's) enemies will not believe it".
"I saw with my own eyes Satyendar Jain giving Rs 2 crore cash to Arvind Kejriwal at his residence. When I asked Kejriwal, he said such things happen in politics and it will be revealed later," Mishra told reporters after paying homage to Mahatma Gandhi at Rajghat.
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"Jain personally told me that he had settled a land deal worth Rs 50 crore of Kejriwal's relative. When I told Kejriwal, he said that it was a lie and asked me to have faith in him," Mishra said.
"The allegations are absurd and do not merit a response. He was sacked due to poor performance," Sisodia told reporters.
Vishwas, who had criticised Kejriwal following the party's dismal performance in the MCD elections, and even threatened to quit party after he was attacked by AAP MLA Amanatullah Khan, came out in support of Kejriwal.
"We can disagree, fight or be disappointed with each other...I know Arvind for 12 years and I can say I cannot believe it, even his enemies won't," Vishwas said.
The city unit of BJP demanded immediate resignation of Kejriwal and a probe by multiple agencies including CBI, Income Tax department and the Enforcement Directorate.
Delhi BJP chief met Lt Governor Anil Baijal and requested him to explore the possibility of "immediately dismissing" the Kejriwal government.
"Sir, we request you to please examine the possibility of immediately dismissing the Chief Minister Arvind Kejriwal and his ministerial colleague Satyendar Jain under the constitutional provisions and report entire matter to the President of India," he said in his letter addressed to LG.
"Kejriwal has no moral right to continue as chief minister in the wake of the allegations by Mishra. He should step down," Maken told a press conference here.
"The Aam Admi Party (AAP) which was formed on anti-corruption plank has lost it in the wake of Mishra's allegations against the chief minister, and the Shungulu Committee report that has put his government in the dock for various irregularities," he said.
Six ministers of the AAP government, out of a total of seven, who had taken oath to fight against corruption on February 14, 2015 (when the government was formed) have been removed so far. It explains that the party has lost its basic premise of being against corruption, he said.
Social activist Anna Hazare said he was pained at seeing his former colleague in the anti-corruption campaign facing allegations of corruption.
"It is painful for me to see what is going on in the Delhi government. It is disheartening to see my former colleague in anti-corruption fight Kejriwal facing the charge of accepting money," Hazare told reporters at his village Ralegan Siddhi in Maharashtra's Ahmednagar district.
Senior BJP leader Subramanian Swamy said the allegations needed to be probed by CBI under provisions of Prevention of Corruption Act.
Without naming anyone, Bedi in her twitter handle said that the "allegation of corruption made by a Minister claiming to be an eyewitness against his own Chief Minister needs an independent investigation forthwith'.
Mishra, on his part, rejected suggestions that was levelling allegations against Kejriwal because he was sacked as a minister.
"I had yesterday written to the ACB about corruption in the government and also raised the issue with Arvind Kejriwal. I also told him I will raise these issues with Lt Governor. I was sacked ten hours after that," Mishra said.
"I saw some of it with my own eyes but I believed in Kejriwal and felt no one can corrupt him. The cases of money laundering, black money and appointment of daughter of a minister (Jain), luxury bus scheme, CNG fitness test scam.... all these were in his knowledge and I always believed he will take action," he said.
He asserted that he will fight "corruption" while remaining in the AAP and no one can throw him out from the party.
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