The I-T department where Kejriwal worked turned down his application and insisted that he first clear the 9.27 lakh he owes the department.
"I have decided to pay the dues claimed by the I-T department. I will take a loan from a friend to pay the amount," said Kejriwal.
Kejriwal was accused by the I-T department of not returning back to government service after he was sanctioned study leave demanding that he return his two year's salary of Rs 3.50 lakh with an interest of Rs 4.16 lakh. Kejriwal also took a computer loan of Rs 50,000 which accumulated to Rs 1 lakh.
Kejriwal said he joined work on Nov 1, 2002 after he took a study leave from Nov 1, 2000 to Oct 31, 2002. He was also on unpaid leave between 2004-2006.
The second notice was issued to Kejriwal on Oct 20 which asked him to pay his dues by Oct 27.