The ruling AAP had then suspended him for alleged involvement in the violence which has left at least 53 people dead and around 200 injured.
The family of Sharma (26), who was found dead in a drain near his home in riot-hit Chand Bagh area, has accused Hussain of being behind the killing. On the complaint of Sharma's father, the police registered an FIR against Hussain. The suspended AAP councillor has rejected the charge.
Communal clashes had broken out in northeast Delhi on February 24 after violence between citizenship law supporters and protesters spiralled out of control. Frenzied mobs torched houses, shops, vehicles, a petrol pump and pelted stones at residents and police personnel.