Earlier in the day, the power minister categorically rejected Mishra's charge, saying "no deal took place" between him and party chief Arvind Kejriwal and that he was "lying" after "losing his mental balance".
"Jain will file a defamation case against him (Mishra) for making baseless allegations of corruption," the official said.
The Aam Aadmi Party today suspended Mishra from the party's primary membership. The decision was taken by its high-powered Political Affairs Committee (PAC) chaired by Chief Minister Kejriwal.
Jain said Mishra had "lost his mental balance" and was thus "speaking nonsense".
Delhi's ruling AAP, which is struggling to steady itself after the shock defeat in the municipal elections, was yesterday hit by a scandal with Mishra accusing Chief Minister Kejriwal of accepting Rs 2 crore from Jain.
"There was no such deal as alleged by Mishra, it is just an attempt to defame the AAP. He (Mishra) says Kejriwal's brother-in-law was to get the favour from a deal. It is shameful and disgusting. The person who has died today (brother-in-law), he is making allegation about a man who is dead," Jain said.
The health minister alleged the BJP has been "after me" for quite some time and have "even spawned jokes", and this issue was just "another attempt".
"He (Mishra) is making corruption allegation against Arvind Kejriwal, perhaps one of the most honest politicians, we know of. He is accusing Kejriwal of indulging in corruption, whose honesty has attracted thousands of workers to join him.
"If he (Mishra) has proof, he should show the documents. He should go to anti-graft bodies, why is he going to media? This is just an attempt to distract and threaten," Jain said.
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