Bayan Baru Independent MP Zahrain Hashim will be sending a legal letter to Penang Chief Minister Lim Guan Eng demanding an apology for alleged defamation.

He has given Lim seven days to explain his "innuendos and accusations" against him or else he would proceed to sue the DAP secretary-general.

Zahrain told reporters at a press conference in the Parliament that his lawyers will be serving Lim a notice of demand at his office in Penang tomorrow.

Lim had stated that Zahrain quit PKR on Feb 12 after failing to get approval for a RM40 million tender for a golf resort project.

Zairain has cited his disappointment with the Penang state government's "dictatorial" leadership under Lim as his key reason for quitting.