U Karunesh said this was just an attempt to slander him as a politician and businessperson.
"I vehemently deny this. Don't engage in slander, practise healthy politics," he told reporters in Rantau today.
Social media postings had alleged that Karunesh was the individual who put up banners urging Rantau voters not to vote for a "keling" yesterday, and vote for BN instead.
A screenshot from a purported Umno Youth WhatsApp group also alleged that Karunesh had been arrested over the matter.
Police, however, deny that any arrests have been made so far.
Karunesh has lodged a police report over the allegations.
Yesterday, BN candidate Mohamad Hasan denied that the coalition was behind the banner, claiming it was PKR's attempt at reverse psychology.
PKR president Anwar Ibrahim said police should investigate the matter and take action, regardless of the culprit.
"If anyone does anything wrong, including from our campaign, action must be taken.
"Likewise, a report against RM10 million Mohamad sent to London should be investigated, that is fair," he said.
Anwar was referring to a decade-old scandal where Mohamad transferred RM10 million to London via a money changer in 2008.
The issue was revived by Negeri Sembilan Legislative Assembly speaker Zulkefly Mohamad Omar last night.
Mohamad has denied wrongdoing.
Streram and Mohamad will face off in the April 13 polls. Two independent candidates – Mohd Nor Yassin and R Malar – are also vying for the Negeri Sembilan seat.