Anand Kumar, an academic from the JNU who was expelled from the National Executive along with Yadav, Bhushan and Ajit Jha will head the Swaraj Abhiyaan movement.
The group -- which had a meeting of over 100 of its leaders and volunteers on Tuesday -- however, refused to term it as formation of a new party and insisted that they had still not quit the AAP.
Addressing a news conference in New Delhi, Yadav said that it would follow the decorum which was not followed in the AAP and lay emphasis on state autonomy with a federal structure where local units will be allowed to take their decisions, bring the organisation under the ambit of RTI and follow a strict code of conduct.
They also announced a 100 member steering committee which will consult people across the nation to decide the future course of action. Decisions will be taken through "collective leadership". There would be no slogans of living individuals.
The organisation will declare its donations and expenditure on its website.
Taking a jibe at the AAP and Delhi Chief Minister Arvind Kejriwal, Yadav said the new organisation will not indulge in personality or cult oriented politics and also reflect the diversity of gender, region and other groups.
“We are not quitting the AAP. We are carriers of the founding principles of the party. If they want to sack us, let them. We have never worked against the party. There is a difference between being anti-party and being disliked by the party leadership," Yadav said.
Bhushan too maintained an ambivalent stand and said the new organisation has come to take forward principles on which AAP was built, which it deviated from.
"Swaraj Abhiyaan is for the purpose of taking forward the objectives, founding principles on which the AAP was founded. It is true that Swaraj Abhiyaan will be an independent organisation and the committee that has been announced is the beginning of that separate organisation.
"It’s not a political party at all. We are not saying that we are not going to form a political party. Political party is that, which registers itself with the Election Commission, which is mandatory to contest polls. In future if we are able to meet the standards and spirit of Swaraj, then this can be given a shape of a political party," Bhushan said.
He added that the functioning of the organisation will be analysed. If it met the standards of the principles of Swaraj then it can be made into a political party.
Responding to an impending disciplinary action from the party, Bhushan quoted from 'Alice in Wonderland'. "Let the execution take place, the trial can follow".
"The Swaraj Yatra will be carried through almost all the districts of the country through which we will tap the new energy for alternate politics. We have also decided to carry out Swaraj Samvad convention across all the states in the country," Yadav said.
He said that through the Swaraj Abhiyaan, the group intends to hold a country-wide movement in different fields and undertake training for alternate politics.
The group also launched a helpline no 7210222333.
Yadav said that the new group will function in a democratic manner. For time being six former National Executive members -- Yadav, Bhushan, Anand Kumar, Jha, Christina Samy, Rakesh Sinha and Vishal Sharma Lathe-- and AAP MLA from Timarpur Pankaj Pushkar will take decisions on important issues till the organisation gets a formal structure.
"Elections will take place and the new organisation will work in a democratic manner," Yadav said.
Dismissing reports that some AAP MLAs could join the rebel group, Yadav said they did not believe in politics of horse-trading or breaking away MLAs.
"Whoever wants to join us are free to do so. Col Devendra Sehrawat, AAP MLA from Bijwasan openly spoke against the goondaism in the National Council meeting. Similarly, Dharamvira Gandhi extended his support and even walked out of the National Council meeting along with us.
Every volunteer of AAP and other organisations who are wedded to the principles of Swaraj are welcome," Yadav said.
When asked whether social activist Anna Hazare would join the movement Kumar said the Gandhian had conveyed his best wishes to them.