After meeting the director, RJD president Lalu Prasad said "this is the true face of the rule of the NDA" of which the JD(U) is the senior partner in Bihar.
"Chief Minister Nitish Kumar time and again alleged that industrialists fled from Bihar during 15 years rule of RJD government. What is happening in his regime?" he said.
Another opposition party, CPI-ML, has also condemned the incident in which ex-MLA Munna Shukla allegedly rang up the director and demanded the money to organise JD(U)'s 'Adhikar rally' here on November 4.
Nitish Kumar, however, said: "Rule of law is prevailing in Bihar where neither anybody is fixed nor protected for wrongdoing. A probe is on. Proper action will be taken. Keep faith on the police."
Santlal Yadav, the director of Pataliputra Engineering College had lodged an FIR on Shukla's alleged demand at Bhagwanpur police station in Vaishali district where Shukla's constituency Lalganj is located.
The present MLA of Lalganj is his wife Anju Shukla, while Munna Shukla is in Muzaffarpur central jail serving life term for the murder of former Gopalganj district magistrate G Krishnaiah in 1994.
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After meeting Lalu Prasad, Santilal Yadav said Shukla called him on October 26 and 27. "First he demanded Rs 7 crore for the Adhikar rally and the next time told me to send Rs 2 crore for the same purpose. I and my family are scared."
He said he has been provided with an armed policeman for his security after the incident which would not send a good signal to outside investors.
The engineering college is owned by Canada based NRI J S Dhaliwal.