Kejriwal's name was a part of several such designs, including the tricolour and 'thank you', which was created by students using multi-coloured cloth pieces at the stands of the Chhatrasal Stadium, the venue of the Independence Day celebrations.
The AAP government today said that it was part of a "tradition" being followed over the years.
Swaraj Abhiyan leader, Bhushan tweeted, "From crores (being spent) on personality cult promoting Kejriwal advertisement to 'Jai Ho Kejriwal' instead of 'Jai Hind'. Shameful Megalomania!"
Aam Aadmi Party (AAP) in April expelled rebel leaders Prashant Bhusan, Yogendra Yadav and two others for anti-party activities, gross indiscipline and violation of code of conduct of the party.
The rebels had expressed disappointment that AAP was no longer adhering to the principles on which it was formed, and also expressed concern about the 'personality cult' which could damage the organisation and the leader himself.
He had recently attacked the Delhi government over using public money for self-promotion in form of advertisements.
"Kejriwal is surrounded by sycophants. So he thinks he is God," Bhushan added.
Yadav also termed the act as 'embarrassing'. "AAP Delhi touches new low," Yadav tweeted.
"The explanation that Sheila Dixit as did it worse than the original sin. Has the AAP Delhi accepted Congress government as its model?" Yadav said.
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