Named Haryana Lokhit Party, Kanda termed it an alternative to existing political system, and assured that his party would work to end "dynasty rule, casteism and regionalism in politics" and work for the development of state.
46-year-old Kanda, who is also the president of the party, said Haryana was deprived of development even after five decades of formation and despite its proximity to the national capital.
"The state is lagging behind in the field of education, healthcare and trade," he said.
Kanda said "dynastic politics of few parties has become biggest hurdle in Haryana's development" and asserted that his party would provide people a clean alternative which would be free from caste politics. "The people of Haryana are looking for a viable alternative.
The state's politics has been under the control of two or three political families. We want to change this," he said. HLP is headquartered in Gurgaon in the same building as his MDLR airlines, whose operations had been suspended earlier.
Kanda, who is facing trial in the suicide case of air-hostess Geetika Sharma and is currently out on bail, had on Wednesday, withdrawn support to the Hooda government.
The legislator, who was state's Home Minister, had earlier this week accused the chief minister of betraying him during crises and also charged the state government with tapping the phones of its Ministers and MLAs.
However, the state government had denied the phone tapping charges.