Former Aam Aadmi Party (AAP) MLA Rajesh Garg was suspended from the primary membership of the party on Monday.
He had earlier served a legal notice on AAP leader Kumar Vishwas for calling him a blackmailer and an opportunist.
In the notice, Garg stated that Vishwas's remarks had tarnished his image and asked him for an unconditional apology within 15 days from the date of the receipt of the legal notice.
The former AAP MLA asserted that if Vishwas failed to tender an apology, he would initiate a suit for damages and file a criminal case.
Vishwas had alleged Garg of blackmail him in return for a party ticket in the Delhi Assembly election.
Garg has accused Delhi Chief Minister Arvind Kejriwal of horse trading last year to form the government.