Public Accounts Committee (PAC) chairman Murli Manohar Joshi negated the charges made by former director general of Comptroller and Auditor General (CAG) RP Singh that the agency's 2G report was audited without guidelines and influenced by the senior Bharatiya Janata Party (BJP) leader.
Joshi said the charges were baseless and the government was trying to defame institutions like CAG.
"All these allegations are baseless," Joshi told media.
"Why didn´t RP Singh take up this matter while he was in CAG?" he said.
He said it is a ´conspiracy to malign institution´ like the CAG.
Slamming the government, Joshi said: "The government is trying to cover up all the corrupt practices through the particular campaign."
RP Singh´s comments erupted a political storm on Friday.
Reacting to the issue, Information and Broadcasting Minister Manish Tewari told reporters: "What is extremely important is that (in) May 2010, when the draft report is prepared by R.P. Singh, the loss is quantified at Rs.20,645 crore."
"But in November 2010, when the report is presented before the Parliament then the loss jumps to Rs.1 lakh 76 thousand crore," he said.
"Former CAG officer R.P. Singh has levelled a serious allegation. Joshi should clear his stand," Tewari said.
Parliamentary Affairs Minister Kamal Nath said, "This matter will be discussed in Parliament today. Many members have called me that they want an investigation. It´s a serious matter."
Singh has disowned the agency´s 2G report and said he was merely asked to sign on it.
"This loss figure (of Rs 1.76 lakh crore) did appear before me in a draft audit report submitted by my field office. I carried out discussion with them. I asked for the supporting documents, on what basis they are saying these are the losses. They said, ´we are taking it as presumption´. I said in performance audit there is nothing called presumption loss. So I deleted this figure and while forwarding my version of report, I clearly mentioned why I am deleting these figures. It seems that at the time of examination in CAG office, these loss figures were restored," Singh told a news channel.