While Congress is silent on the matter, opposition parties have demanded immediate action against the minister besides a thorough inquiry into the allegations of money laundering.
On his part, School Education Minister Sailajanath pleaded innocence and maintained that money laundering was too big a thing for a small person like him.
He, however, admitted that he did try to "help" his friend secure a bank loan and "just put in a word" to the bank officials.
A local orthopaedic surgeon P Hariprasad, who Sailajanath said was his junior, was supposed to take up the real-estate venture.
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The Cobrapost scribe, who posed himself as an investor (of black money), first approached a senior official of Indian Bank R Manohar in New Delhi and through him met Hariprasad.
Hariprasad and Manohar, who are said to be related to each other, took the scribe to Sailajanath, who agreed to "stand guarantee" for the investment.