New Delhi, Sep 2 (IANS): The Aam Aadmi Party (AAP) on Saturday demanded the resignation of Delhi LG V.K. Saxena for allegedly awarding a contract for interior designing of a Khadi lounge in Mumbai while serving as KVIC chairman.

Addressing a media briefing, AAP Rajya Sabha MP Sanjay Singh demanded that Prime Minister Narendra Modi 'immediately' sack him.

"I want to ask Prime Minister Narendra Modi why he has kept tainted LG. You have to remove him. The LG will have to resign", Singh said. He also demanded that legal proceedings be initiated against Saxena for violating the law to favour his daughter.

"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," he alleged.

"The Khadi Village Industries Act says that no family member can be given work, they have violated this act. AAP will consult the lawyers in this matter and take legal recourse in the matter. Earlier, being the President of KVIC, during the time of demonetisation, many scams and scams were committed", Singh alleged and also added that such a person should be dismissed from the post of Lieutenant Governor of Delhi.

"We welcomed the investigation against Manish Sisodia in fake cases, but no case is being registered against LG", he said in the media briefing.