Gandhi also said he would file a criminal defamation suit against Swaraj Abhiyan leaders who held a press conference on the allegations against him.
"I am going to file a criminal defamation suit against Swaraj Abhiyan leaders," Gandhi told IANS.
Swaraj Abhiyan leaders Yogendra Yadav and Prashant Bhushan on Thursday released a letter written by US based lawyer C. Edmonds Allen to the Prime Minister's Office in which he has alleged that Gandhi was "honey trapped and compromised" by defence middleman Abhishek Verma.
"They made allegations on behalf of the mails sent by an American lawyer to the Prime Minister," Gandhi said, adding "But that didn't have any evidence against me".
Read More: Varun Gandhi under attack over defence deals
"In their entire press conference, I did not get a single iota of substantial evidence in substance of allegations made against me," Gandhi said.
Asked if he knew Verma, Gandhi said, "I met him in 2002, when I was doing my post-graduation in politics. It's 14 years now that I haven't met him."
"I didn't know him personally but knew him through family as he was the son of a Member of Parliament," Gandhi added.
Allen's letter, written on September 16, said that "a member of parliament of defence consultative committee named Varun Gandhi has been honey trapped and compromised by the notorious arms dealer Abhishek Verma."
Varun Gandhi is no longer a member of the consultative committee of defence ministry.
Allen has also sent the letter to Defence Minister Manohar Parrikar and National Security Advisor Ajit Doval.
"I am deeply hurt by the sleazy allegations made against me," Gandhi said.