Agarwal, speaking to the media, said, "I am a fourth generation Congress man and it's my right to contest."
Agarwal has said that those who have come from other party can't claim the seat.
However, he said that he will abide by whatever interim party president Sonia Gandhi decides.
Agarwal was one of the leaders who met Sonia Gandhi on Monday and told her that if she wants he will contest the Delhi assembly polls.
Chandni Chowk has been a seat from where Congress has won five times with Prahlad Singh Sahni being elected from the seat. Now Sahni is a candidate from the Aam Aadmi Party and Lamba, the sitting MLA, has defected to the Congress.
Sources close to Lamba said that Sonia Gandhi has assured her a ticket as Agarwal has been contesting elections from trans Yamuna.
The Congress has asked all its senior leaders to contest the Delhi assembly elections.
However, sources say Ajay Maken is unlikely to contest and has reportedly gone abroad so he cannot be contacted and text messages to his phone were not answered. Maken is believed to have told the leadership that he has some family issues. Delhi Congress in charge P.C. Chacko also could not be contacted despite several attempts.
Meanwhile, Delhi Congress Chief Subhash Chopra claimed that those who have been denied tickets from the AAP are in touch with the Congress including Adarsh Shastri who has been replaced by another candidate.
The Congress' first list is expected on Thursday as the party's election committee has met and finalised candidates for half the seats but last minute hiccups are being ironed out, a party leader said.
( With inputs from IANS )