Mr Bhushan, whose son Prashant is a member of the AAP's National Executive, donated Rs 1 crore for Arvind Kejriwal's party at the celebrations to mark its launch.
Besides, over Rs 1.6 lakh was collected from people who had gathered to witness the ceremony.
Speaking at the rally, Shanti Bhushan said people of the country have "stood up for themselves" and that they would decide their fate from now on.
"Parliament will have common people. People from all walks of the society will go to Parliament. They will decide their future," he said.