His two-year prison sentence temporarily disqualified him from parliament until the verdict was suspended by a higher court, but raised concerns over democratic norms in the world's most populous country.
Congress leaders called a press conference on Thursday to announce that their bank accounts have been frozen due to the ongoing investigation into tax filings and the party does not have the necessary funds to contest this year's elections.
Kejriwal's AAP, Congress and more than two dozen other parties have formed an alliance to jointly contest the national elections to be held between April and June.
Modi and BJP are strong favorites to win the elections for the third time.