Naqvi, vice-president of the Bharatiya Janata Party (BJP), last week alleged that Ali was close to Indian Mujahideen co-founder Yaseen Bhatkal.
"I will sit here till I get justice. He (Naqvi) should prove the allegation or give an apology letter," Yasmin told reporters outside Naqvi's Pandara Park house here.
Ali was inducted into the BJP Friday after being expelled from the Janata Dal-United (JD-U). He was, however, thrown out of the party Saturday after a vocal protest by Naqvi.
Naqvi tweeted: "Terrorist Bhatakal friend join BJP... soon accepting Dawood."
There have been allegations on the social media that Bhatkal was arrested from Sabir Ali's house. Police or the home ministry have, however, not given any such information officially.
Ali has also filed a defamation case against Naqvi.