The Aam Aadmi Party (AAP) on Saturday alleged that Delhi LG V K Saxena misused his position and awarded a contract for interior designing of a Khadi lounge in Mumbai to his daughter when he was the KVIC chairman and demanded that Prime Minister Narendra Modi "immediately" sack him.

Addressing a press conference, AAP national spokesperson and Rajya Sabha MP Sanjay Singh also demanded that legal proceedings be initiated against Saxena for allegedly awarding the contract to his daughter in violation of the law.

"LG V K Saxena, during his term as KVIC chairman, misused his position and awarded a contract for interior designing of a Khadi lounge in Mumbai to his daughter. In awarding the contract, he violated the provisions of the KVIC Act 1961," Singh charged.

The prime minister should immediately sack Saxena as the Delhi LG and legal action should be taken against him for illegally awarding the contract to his daughter, he said.

The AAP is holding consultations with its senior lawyers and preparing to approach the court in the matter, Singh told reporters.

"Delhi LG can't' escape his misdeeds. We will soon be approaching court in the matter because the due process of awarding the contract was not followed," he said, asking "how can the KVIC chairman give a contract to his relative?".