Umno Youth vice chief Khairul Azwan Harun will sue PKR lawmaker Rafizi Ramli for alleging that he was involved in Mara's property purchases in Melbourne.

He said his lawyers have initiated legal action after the PKR vice-president failed to apologise and retract the statements.

"I made this decision to uphold the truth and defend the pride of Umno Youth and the position entrusted to me

"I wish to stress that (Rafizi's) allegations are false and malicious to me and Umno Youth," he said in a Facebook posting today.

Khairul Azwan said while he supports healthy debates and differences of opinion, lies and slander must not be perpetuated as it can ruin the political landscape.

Rafizi had claimed that one of those implicated in Mara’s purchase of a student hostel at 746 Swanston Street in Melbourne had connections with Umno Youth's leadership.

The building was among four properties purchased by Mara at inflated prices.

In making the accusation, Rafizi highlighted that Khairul Azwan is the chairperson of Biosis Group Bhd, where one of the directors also serves on the board of the company that holds the property.

Malaysiakini is attempting to seek Rafizi's response.