The state government had started issuing notices to freeze land owned by non-Gujarati farmers in 2003 and started taking their possession since 2010.
Modi had alleged that his government's action was based on the Bombay Tenancy and Agricultural Lands Act, 1958, which he said was passed by the then Congress government.
Taking strong exception to Modi's claim, state unit Congress president Arjun Modhwadia today said, "Modi, who is known for his lies, is once again telling lies that former Congress government formed the policy to deprive non-Gujarati farmers to own land in the state".
"I have written a letter to the Punjab chief minister and apprised him in full details that how his Gujarat counterpart is lying on the issue," Modhwadia told reporters here.
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He alleged that Badal, whose party SAD is a constituent of NDA, was "siding" with Modi on the issue without verifying facts and has hurt sentiments of Sikh farmers. "I hope after going through my letter, the Punjab chief minister will apologise to Sikh farmers," he added.
The controversy gathered steam today with several Congress MPs from Punjab and Haryana approaching Prime Minister Manmohan Singh in Delhi to convey fears of displacement of Sikh farmers from Kutch region.
"The misunderstanding has been created because of an ordinance, issued 50 years back by then Congress government and by the interpretation of a circular of 1973," Modi had said in a statement.