Mr Dunne accused Mr Sahota, a Sikh, of "talking through his turban" at a hustings for the Ludlow constituency candidates in Church Stretton.
He apologised afterwards, but West Mercia Police later confirmed the incident was being investigated as a hate crime.
Mr Sahota has now posted a video on the West Midlands Labour social media channels, entitled 'Sikh speaks out about Tory racism'.
He says: "That remark was uncalled for and was insulting to my turban and to my Sikh faith.
"This is what Tories think about us minority communities in private, and here, the mask slipped.
"Do you really want to vote for a party who says one thing in public but in private they laugh and jeer at you?"
Mr Sahota goes on to say it is in the Conservative' party's DNA to "say such things and think that way".
Philip Dunne said he found it disappointing that it had been brought up again as he thought the matter was "behind us".