AAP leader and advocate Prashant Bhushan also alleged that Manish Tewari, who was a Union Minister in the previous UPA government, had a retainership contract with Reliance Industries.
Tewari said he had surrendered his bar licence the day he was made a Union Minister in 2012 and had written to RIL terminating the relationship.
"Why is he sitting over this notice for the past three months and not allowing Department of Telecom's Access Service Division to issue notice to Reliance," Bhushan said.
Prasad, he alleged, had received Rs 84 lakh as retainer fee.
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The Minister termed the allegations as "completely false and misleading" and said he had terminated all his professional relationship with Finetech in March, two months before he became a Minister.
"I have never given any advice or appeared for RIL," he said. "FineTech is a different corporate entity to whom legal services were rendered. Giving legal advice or retainership to companies is quite common with lawyers particularly with eminent lawyers."
"As regards allegation about Reliance 4G issue (is concerned), every decision will be taken purely objectively on merits and in light of final report of CAG," he added.
Bhushan said CAG had in its report stated that Infotel Broadband Services, which was acquired by RIL, was shown undue favours in award of pan-India broadband spectrum resulting in loss of more than Rs 20,000 crore to the exchequer.
Addressing a press conference, AAP leaders Bhushan and Yogendra Yadav released what they said were receipt of payments made to Prasad and Tewari and demanded sacking of the Telecom Minister saying it was a clear case of conflict of interest.