Delhi Chief Minister Arvind Kejriwal said decisions on internal security are taken based on the law and order situation in the state.
"Deployment of the army within the country should be decided on the basis of the internal security threat. There is no question of a referendum on this. But we believe the sentiments of locals should be respected otherwise the democracy will be under threat," he told reporters when asked about Bhushan's comments on the issue.
He said, "The AAP does not support referendum on such issues."
Bhushan had said a referendum should be carried out in Kashmir to decide on the deployment of the army to deal with internal security threats in the Valley.
He had also sought the removal of the Armed Forces Special Powers Act in the state, saying it gave the army immunity in cases of human rights violations while alienating the people.
"It is very important for us to win the hearts and minds of the people and prevent alienation. For that, the first thing which needs to be done is to remove AFSPA, which gives the army immunity in (cases of) human rights violations," Bhushan had told a TV channel.
The army's deployment for internal security purposes should take place only with the consent of the people, except in cases where the rights of minorities need to be protected, he had said.
In 2011, Bhushan had triggered a controversy by supporting the idea of holding a plebiscite in Jammu and Kashmir.
Hazare distances from Prashant Bhushan on Kashmir remark
Prashant Bhushan says sorry to SC for 'disturbing' remarks
Book Prashant Bhushan for sedition: Baba Ramdev
Bhushan paid price for his Kashmir comments: Thackeray
Kumar Vishwas apologises after JD-U MLA threatens to withdraw support