Sharma told a crowd at a local hall that Muslim youths should not attend Garba alone but bring sisters and daughters, insisting that participation demands chanting "Jai Shri Ram" and applying a tilak.
Congress leader Arif Masood slammed the remarks as "highly objectionable," accusing Sharma of inciting communal passions and urging him to "mend his ways".
AIMIM president Mohsin Ali Khan condemned the comments, claiming they attempt to divide society and warned Sharma to read the Constitution and seek counsel from party colleagues.
Sharma defended his stance, arguing Garba is a Sanatan festival and that Muslim participation should be accompanied by family members as a sign of respect.
The BJP has yet to issue a formal response, but insiders say a disciplinary meeting is likely, and the incident could influence the upcoming local elections.