"A case has been registered for molestation, eve-teasing and intimidation," Additional Deputy Commissioner of Police Rajeev Ranjan told IANS.
Mr Jarwal, who represents Deoli constituency in Delhi assembly, has denied the charge.
The alleged incident took place on July 2, when the victim, a resident of Sangam Vihar, had gone to the Delhi Jal Board office in Greater Kailash area to make a complaint, Mr Ranjan said.
Mr Jarwal and his supporters allegedly molested the victim there.
Mr Ranjan said the police is currently investigating the matter.
Asked whether the victim first approached Lt. Governor Najeeb Jung and the Police Commissioner to register a first information report (FIR), Mr Ranjan said: "The victim had sent the complaint to all the people on the same day."
Meanwhile, Mr Jarwal posted on Twitter: "Molestation of women against me is baseless. It's all about dirty political game."
Mr Jarwal had been arrested in May 2014 for assaulting a junior engineer of the Delhi Jal Board at Sangam Vihar.
It's the second such case against an AAP legislator in a fortnight. Earlier, a sexual harassment case was registered against Dinesh Mohaniya who represents Sangam Vihar in Delhi assembly.
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