Deputy Chief Minister Manish Sisodia while dismissing the allegations indicated that the government may take action against those trying to "defame" it.
"It has been brought to the notice of Delhi government that false, misleading and defamatory news items have appeared in sections of the print media, which are also being aired by some TV news channels about pricing of procurement of onions," the Delhi government said in a rejoinder issued today.
"Delhi government strongly denies these malicious reports and condemns desperate attempts by a section of the media to create confusion in the minds of the people," it said.
Earlier, in a press conference held at his residence, Sisodia, claimed that the even when prices of onion were going through the roof elsewhere in the country, Delhi government tried to "make it available to people at reasonable rates".
"We procured onions from a SFAC (Small Farmers, Agri Business Consortium), which is an agency of the Central government, at Rs 32.86 per kg. Thereafter, the costs of transportation till the sale outlets, loading and unloading charges, margin money to be provided to the retail outlet owners, was to be added. This entire process cost Delhi government around Rs 40 per kg," he said.