The AAP's chief whip Sukhpal Singh Khaira had also resigned from the party on Monday following the removal of Ghuggi as the party's state convener.
Sources have also informed that the AAP has made these appointments succumbing to the fact the Hindu community in Punjab kept distance from the party as the media had maligned the party's image by linking it with pro-freedom Sikh leaders.
"I had joined this party with high hopes, but today I am resigning from its primary membership with a heavy heart".
Hitting back at Ghuggi, the newly appointed chief of the AAP's state unit said, "He was made the party's state convener within two months of joining".
Sandhu, who was the party candidate for Amritsar Lok Sabha bypoll, had opposed Mann's appointment as Punjab AAP chief.
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A few leaders in AAP's Punjab unit are upset over Mann's elevation.
"We the overseas team recognise HS Phoolka, Kanwar Sandhu, Sukhpal Khaira, Aman Arora and other MLAs as the stalwarts of the Punjab AAP Team and future state decisions and national decisions should be made in the presence of these individuals", the letter says. "The party invited members to vote based on a pick and choose policy", he alleged, adding that the election process for choosing the new State chief was an eyewash. "It has become hard for me to continue with this party".
Ghuggi said he had resigned as the AAP had ditched its ideals. "But they closed doors for all good people", he said. He had replaced Sucha Singh Chhotepur, who had been sacked on charges of accepting a bribe from a party volunteer. "He said he had been defending the various indiscretions of Mann in public", The Indian Express quoted him as saying. "They should have been included in the selection process", he said adding that AAP was deviating from its principles. "I had also said that his selection would have helped clear the doubts that the party works for a particular community", he said.
Reacting to Ghuggi's resignation, Khaira said he was saddened with this development as the party had lost a hardworking, clean and popular leader. "His resignation is a direct result of the moral degradation of the AAP", SAD secretary general Sukhdev Singh Dhindsa said.