It has been alleged that Pushkar got free equity worth Rs 70 crore in the Kochi franchise with the help of close friend Shashi Tharoor, who is Minister of State for External Affairs.
Ashish Mehta, the lawyer, said Pushkar has asked for his legal assistance.
"I write to confirm that Ms Sunanda Pushkar has engaged my professional services," Mehta said in a written statement last night.
He said his client's image had been tarnished, and they would "seriously consider filing for damages".
Mehta insisted media has misrepresented her client and that facts needed to be put straight. According to him the reports that Pushkar was a beautician, spa owner or a socialite are untrue.
"Ms Pushkar has 20 years of hard core work experience."
Sources say Pushkar made her fortune as an executive of a state-owned company in Dubai and has never been in the spa business.
"All this spa business is untrue. She has been an entrepreneur and businesswomen for long and that has brought her wealth," an ex-colleague of hers said on the condition of anonymity.