Upadhyay, however, issued another notice to Dagar asking him what legal action he is taking in this connection.
Aam Aadmi Party chief Arvind Kejriwal on September 8 accused Dagar of offering a bribe of Rs 4 crore to one of its MLAs for switching sides against the backdrop of government formation moves in the capital.
Delhi BJP chief Upadhyay had slapped a show cause notice seeking his explanation in the wake of the allegations.
Upadhyay said, "In his reply, Dagar explained that the sting is totally fabricated. However, we have asked him what legal action --whether he is going to file an FIR or file defamation case -- he he planning in the case. I have asked him that he has to prove his stand."
The Delhi BJP chief also said that the party has asked him to file his explanation within the next one week.
"We have asked him to prove his stand on these allegations so that the party's image is not compromised," he added.
On September 8, Aam Aadmi Party Chief Arvind Kejriwal had claimed at a press conference here that AAP MLA from Sangam Vihar, Dinesh Mohania, was offered Rs 4 crore by Delhi BJP Vice President Sher Singh Dagar to quit the party.
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