Pushkar is facing allegations that she got free equity worth 70 crore rupees in the 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 Sunanda Pushkar has engaged my professional services," Mehta said in a written statement lat night.
He said his client's image had been tarnished, and they would "seriously consider filing for damages".
Mehta rubbished reports that Pushkar was a beautician, spa owner or a socialite are untrue. He insisted media has misrepresented her client and that facts needed to be put straight.
According to sources, 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 was quoted by news agency as saying.