Umno youth vice-chief Khairul Azwan Harun has demanded for an apology from PKR secretary-general Rafizi Ramli for alleging that he was involved in Mara's property purchases in Melbourne.

Khairul Azwan said he is not involved in the matter in any way.

"It is a slander and I won't hesitate to take action if he does not apologise or stop the lies," he told reporters at a function in Kuala Lumpur today.

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

This property was among four properties purchased by Mara at an inflated price.

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

KJ: Cannot assume guilt

The director is one of two directors who serve in the Mara Inc subsidiary based in the British Virgin Islands (BVI), despite being supposedly unaffiliated to Mara.

Australian authorities are probing claims by Australian newspaper The Age that there were kickbacks involved one of the property purchases, while Rafizi had alleged wrongdoings in the purchase of the other three properties as well.

In Khairul Azwan's defence, Umno Youth chief Khairy Jamaluddin it was wrong of Rafizi to assume the former is guilty by association.

"Just because A knows B, and B did something wrong that has nothing to do with A, you can't accuse A of doing wrong.

"Even those who are involved are not proven yet, so how can he say someone else is involved," he said.