In a letter to Jung, Swamy also sought prosecution of Deputy Chief Minister Manish Sisodia claiming that as Finance Minister in the first AAP government he had also favoured the private firm which was a VAT defaulter.
There was no immediate reaction from Delhi Government about the allegations by Swamy.
"During his first tenure as Chief Minister, Arvind Kejriwal and his then Finance Minister Manish Sisodia had illegally favoured M/s SKN Associates Ltd," Swamy said in his letter to Jung.
Swamy alleged that Kejriwal and Sisodia, instead of trying to recover the dues from the company for the state exchequer, started seeking donation from the tax defaulter for AAP.
Claiming that four subsidiary companies of SKN Associates had paid a total of Rs 2 crore to AAP, Swamy alleged the firm was given various contracts including supply of electrical equipment, air conditioning and LPG and CNG materials.
(Reopens DES8)
Sources in the LG office said that Lt Governor's office will examine the matter raised by Swamy in his letter seeking sanction of prosecution against Kejriwal and his deputy Sisodia and then, Jung will take a final decision in this regard.
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