Yadav, whose name figures in the probe into the alleged racket, issued a statement here saying he knew Sunderlal Yadav as he belonged to Faizabad district but accused the 'paan' shop owner of naming him during the police interrogation just to "save himself".
He said the Sunderlal had been living in Delhi for the last 30 years.
Yadav, however, denied his involvement in any human trafficking racket saying there were "no passports" in the name of his wife, son and daughter-in-law and he had visited several countries as part of a Parliamentary delegation.
The Faizabad MP alleged that a Hindi news channel was conspiring against him and said he would move a privilege motion in Parliament against it for "maligning my image" by taking his name in the racket.
Sunderlal Yadav was arrested by Delhi Police in the case along with Rajender Kumar Gampa, an aide of Katara, and his (Rajender) sister Kiran, a beautician.