Kumar rubbished the allegations as "baseless, unfounded and ludicrous" with the sole intention of "besmirching my personal integrity, reputation and competence" and said necessary legal action is being initiated against AAP leader Prashant Bhushan in this regard.
Addressing a press conference on a day when angry protesters, including those belonging to AAP, were demanding Kumar's removal from the post, Bhushan claimed Verma's close associate Edmonds Allen had written to government earlier that Kumar has links with the alleged arms dealer.
"These allegations are at the behest of persons who have been arrayed as accused in investigations conducted under my supervision during my tenure in the CBI," he said in a statement.
Kumar said he had already issued a legal notice to retired bureaucrat M G Devasahayam, who had raised similar allegations. Devasahayam's writ petition in this regard was entertained by the Delhi High Court.
Kumar said he is a highly decorated officer and have received medals from President, commendations from various state governments, successive Directors of CBI in recognition of meritorious service.
"The allegations levelled by Bhushan are clearly with oblique motives and are being made for vested political interests. Necessary legal action is being initiated against him in this regard.
Referring to the security cover provided to business tycoon Mukesh Ambani, Kejriwal said the government is more interested in providing such facility to these people forgetting that it is the common man who badly needs it.
Bushan also described the action against eight persons following the death of Delhi Police Head Constable Subhash Tomar as an attempt by the government to malign AAP.
