Top government ministers launched a sharp attack on the Congress leader with Arun Jaitley calling it "irresponsible" and M Venkaiah Naidu describing it as "anti-national", and demanding an apology.
Speaking in the Upper House, Azad said 40 people had died following government's decision on demonetisation and added that fewer had been killed in attack by Pakistani terrorists in Uri.
"Who should be punished" for the death of these 40 people due to "wrong policy" on demonetisation, Azad asked and added that "millions of people are troubled. BJP and the government are responsible".
Terming Azad's remark as "anti national", I and B Minister Naidu demanded that the entire Congress party apologise and also asked Deputy Chairman P J Kurien to expunge it.
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"It is an anti-national statement. Pakistan will use this statement. You want to give a certificate to Pakistan," he said, demanding that the "entire (Congress) party apologise" for the "atrocious statement".
Azad said he was only referring to the number of people who had died due to the government's decision of demonetisation.
Echoing Naidu's views, Parliamentary Affairs Minister Ananth Kumar said Azad's remarks are "atrocious, anti-national and an insult to the martyrs".
"In its desperation, government is seeking to communalise the issue and raising the bogey of nationalism," he said.