"I want to deny allegations of receiving foreign funds and money from capitalists," Hazare said in a statement issued at Ralegan Siddhi, his village in Ahmednagar district.
"If anyone can prove that our movement gets foreign money, I will take 'sanyas' (renounce) from social work," he said.
Hazare's clarification came after a magazine called the Gandhian leader a foreign agent.
The magazine, which is published from Madhya Pradesh, had accused Hazare's non-governmental organisation of accepting foreign funds and blocking development work.
Stating that efforts of those who make baseless allegations won't succeed, the 77-year-old Hazare said that he has been transparent in his financial transactions.
Hazare also referred to death threats received by him. "Some said they will kill me the way Nathuram Godse killed Mahatma Gandhi," he said.
