New Delhi,  The Delhi High Court on Thursday reserved its order on a defamation suit moved by Delhi Lieutenant Governor (L-G) Vinai Kumar Saxena against the Aam Aadmi Party (AAP) and its leaders for levelling allegations against the L-G of corrupt practices during demonetisation.

After hearing the submissions of the parties, Justice Amit Bansal reserved the order.

Referring to the allegations levelled by the AAP leaders -- Sanjay Singh, Atishi Marlena, Saurabh Bhardwaj, Jasmine Shah and Durgesh Pathak, L-G's counsels submitted that their tweets and press conferences in this regard have been widely reported.

Senior Advocates Mahesh Jethmalani and Maninder Singh, represented the LG during the course of the hearing.

They also argued that the allegations are 'derogatory' and 'malicious' and against a high constitutional functionary.

In August, AAP came forward with serious allegations against the L-G, saying that he had "indulged in money laundering during demonetisation, besides gross misuse of power as the Chairman of the Khadi Gramodyog".

During a media briefing, Marlena alleged that two Khadi Village Industries cashiers testified against Saxena.

"Why wasn't an investigation ordered against him? AAP demands the Central government and the CBI to get a thorough investigation done in V.K. Saxena's Rs 1,400 crore scam case. This is a clear case of money laundering, ED must take up a probe and raid his offices and residences," she said.

"Two of the cashiers of KVIC, Sanjeev Kumar and Pradeep Yadav, have given a statement to various inquiry committees. It is not possible for the cashiers to convert black money into white because they hold very small posts. It is also not easy for the cashiers to give statements. But they have given written statements that they were pressured by the then Chairman Vinai Kumar Saxena to exchange the old currency notes, which was basically black money, with new ones," Atishi told the media.

Other party leaders and the AAP had also demanded a CBI and ED probe into the matter seeking the L-G's arrest.

Earlier, the L-G had sent a legal notice to them on the allegations.