Late on Tuesday night, Aam Aadmi Party MLA Prakash Jarwal was already arrested by police.
"One AAP MLA Prakash Jharwal has been arrested by Delhi Police on a frivolous complaint by IAS," AAP chief Spokesperson Saurabh Bharadwaj said in a tweet.
"Number of false allegations have been levelled against us," said Sanjay Singh of AAP.
Meanwhile, one of the opposition parties Congress demanded apology from Delhi CM Arvind Kejriwal.
Delhi BJP has also sympathised with Delhi Chief Secretary Anshu Prakash.