Known to be a staunch AAP supporter, Dadlani deleted the tweet and tendered an apology, saying he "made a mistake by offending the peaceful Jain community".
He also apologised to the Jain monk on Twitter.
Following Dadlani's tweet on Saturday, Kejriwal had disapproved his remark saying that "Tarun Sagarji Maharaj is a very revered saint, not just for Jains but everyone and those showing disrespect is unfortunate and should stop", while Delhi PWD Minister Satyendar Jain sought "kshama" from him on behalf of his music composer "friend".
The Haryana government had invited the Jain monk, who appeared in nude, to deliver a lecture 'Kadve Vachan' in the Assembly on Friday.
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"It feels bad that I hurt my Jain friends & my friends @ArvindKejriwal & @SatyendarJain. I hereby quit all active political work/affiliation. I apologise again, to the Jain Community, & all others offended. But I beg you all not to support religion in governance, for India's sake," Dadlani tweeted.
"I made a mistake by offending the peaceful Jain community, and I felt the only way to truly apologise, was to renounce my ego. I made a mistake, & I'm genuinely sorry. That's all," he said.
"A lot is being said against AAP because I chose to quit. Neither Arvind, nor anyone else, asked me to quit. I make my own decisions. I just want to say, AAP is a family. Please keep faith in AK (Kejriwal) & the party! Never forget how hard AK & AAP have fought for all of us.
"AAP volunteers, stay strong & fight twice as hard. With you all, in spirit," Dadlani said in a series of tweets.
"I met Shri Tarun Sagar ji Maharaj last year. Our family regularly listens to his discourses on TV. We deeply respect him and his thoughts Tarun Sagar ji Maharaj is a very revered saint, not just for Jains but everyone. Those showing disrespect is unfortunate and should stop (sic)," Kejriwal tweeted.
Dadlani is a staunch supporter of Kejriwal in the film industry and had campaigned for the party in Delhi Assembly polls and the 2014 Lok Sabha election.
He had composed the 'Paanch Saal Kejriwal' song, which became popular during the 2015 Delhi Assembly polls.