While the change can be seen as a fallout of the donation scam raised by sacked Delhi minister Kapil Mishra, the party, has condemned the motivated attempts to read between the lines on simple internal administrative matters of the party.
"He is spearheading the legal strategy team of the party so he had requested the National Executive that he be relieved," said Mr Bajpai.
"Our account books are pious and there is no question of our involvement in illegal dealings," the newly appointed AAP treasurer added.
Kapil Mishra, who was sacked as a minister in the Delhi government last month, has alleged that the party indulged in hawala and fraudulent transactions during Mr Chadha's tenure as AAP treasurer.
"Merely removing him from the post won't do... There has been a lot of hawala dealing during his tenure as treasure," Mr Mishra said.
There was a huge commotion outside Delhi Chief Minister and AAP convener Arvind Kejriwal's residence on Friday morning as Mr Mishra arrived with drums, singers and over a dozen people. He demanded to meet Mr Kejriwal as part of his weekly audience with the public.
(with inputs from PTI)