Mr Kejriwal had called a meeting of all the Aam Aadmi Party (AAP) lawmakers to underline the need for value-based politics.
"We say that we have honest people in our Cabinet but it pains whenever anyone is caught indulged in corrupt practices. We will not spare any MLA or party member if caught involved in corruption," he said in the meeting which came after Food Minister Asim Ahmed Khan was sacked for allegedly demanding Rs 6 lakh in bribe from a builder.
Mr Khan is the second minister in the AAP government to exit in disgrace. Then Law Minister Jitender Singh Tomar was forced to resign in June after police arrested him on charges of faking his educational degree.
During the meeting, Mr Kejriwal made an emotional appeal to all legislators to opt for honest and value-based politics and think about their families before doing anything against the law.
"Please do think about your family before committing any misdeed. It will be a social embarrassment for one's entire family if he is caught over the corruption charges," he said, adding the entire system - the central government and police - was against the AAP government so the legislators should be ready to go to jail.
AAP lawmakers were accompanied with their families at the meeting.
Addressing the gathering, Deputy Chief Minister Manish Sisodia said: "It was a tough decision to sack Asim over corruption charges but the party will not shy away from repeating it."
After the meeting, a lawmaker said: "MLAs shared their experiences. It was a get-together just like a family."
Controversial leaders including Mr Somnath Bharti, who was recently released on bail in a domestic violence case filed by his wife and Mr Tomar also attended the meeting.
Mr Khan and Timarpur lawmaker Pankaj Pushkar were not invited.
Reacting at being left out, Mr Pushkar told reporters: "This questions whether the real fight is against corruption or against some individuals."
Delhi Congress chief Ajay Maken meanwhile hit out Mr Kejriwal over Mr Tomar's presence.
"Kejriwal Ji (sic) with MLA family members on corruption & On High Table with Kejriwal is #FakeDegree Ex-Law Minister Tomar!" he tweeted.
The AAP has 67 lawmakers in the 70-member Delhi assembly.
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