"I would like to point out the false and frivolous allegations and the claims made are wild and unsubstantiated. I will take action against those who sought to tarnish my reputation," said Gandhi in a statement.

"I've never met Edmonds Allen who has written this letter containing these allegations, nor do I know him," he added.

Gandhi also said that he did not have access to secret defence deal information. 

Swaraj Abhiyan leaders Prashant Bhushan and Yogendra Yadav had released a letter written by Edmonds Allen, a New York-based lawyer, to the PMO last month that Varun was honeytrapped and compromised by arms dealer Abhishek Verma.

Allen alleged that Verma "blackmailed" Varun, a member of the Defence Consultative Committee, into sharing sensitive information on crucial arms matters.

Varun rejected these charges, saying he has not met Verma since 2004 and threatened to file a defamation suit against Bhushan and Yadav over the charges.