The leader of the newly-formed People's Party says he rejected a proposal from Winston Peters to work alongside New Zealand First.
Indian businessman Roshan Nauhria says he met with Mr Peters before the 2014 election to discuss how New Zealand First and the Indian community could work together better.
He says the meeting was held at a motel on Auckland's Great South Rd, and was also attended by New Zealand First MP Mahesh Bindra and one other man.
"Because I'm one of the leaders of the Indian community, maybe [we could] work with him, right? And so things were discussed," says Mr Nauhria.
"We said we'd think it over and come back [to him]. And we decided no, we didn't want to work with him."
A few days after the meeting, Mr Nauhria says he had dinner with Mr Peters at a restaurant called India Gate, and gave him a donation in the form of a cheque for $3000.
The donation and the association with Mr Nauhria are politically embarrassing for Mr Peters because he has been attacking the People's Party, including calling it a "front" for the National Party.
Mr Peters was contacted for comment, but he didn't want to talk.