The PWD issued the notice after the approval of Lt Governor Anil Baijal.
The Delhi government's Public Works Department (PWD) has issued a showcause notice to the AAP asking why the "illegal" allotment of office space to it on Rouse Avenue should not be revoked.
In the notice issued to AAP's national secretary Pankaj Kumar Gupta on September 26, the PWD also asked why it should not recover "market rent or penal rent" from the party.
The PWD issued the notice after the approval of Lt Governor Anil Baijal.
The department said if the Aam Aadmi Party failed to file a reply within a week, the matter will be decided by the L-G.
It said the party may appear before Baijal through an authorised representative on October 10.
The move comes over a month after the Delhi High Court set aside an order of the Lt Governor cancelling the allotment of a bungalow to the AAP in the heart of the capital, saying no reason was given for the action.
In June, the PWD had imposed a penal rent of around Rs 27 on the AAP on charges of "unauthorised occupation" of the office.