"The charges levelled by (Colonel Devinder) Sahrawat against me are baseless and malicious. I will file a defamation case against Sahrawat for spoiling my image," Sanjay Singh told the media here.
He said the allegation was a conspiracy by the Bharatiya Janata Party (BJP) and the Akali Dal against him and the Aam Aadmi Party (AAP) in a bid to derail its campaign in Punjab.
"The BJP and Akalis are rattled by the AAP's success in Punjab as they know we are getting over 100 seats there. The Delhi MLA is being used to defame me and the party," he added.
In a letter to Delhi Chief Minister Arvind Kejriwal, AAP MLA Sehrawat on Sunday said: "I saw disturbing reports about women being exploited in Punjab in return for ticket. The MLAs of Delhi are unaware about what is being done by party representatives in Punjab.
"Now the situation is getting indefensible and disgraceful. Action needs to be taken to remove rotten elements," Sehrawat said.
The AAP has emerged as a major player in Punjab, where elections are due early next year.
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