"Untruth cannot become the basis for crucifying anybody. Till court pronounces...Everyone enjoys equal protection. They are innocent till proved guilty," Congress spokesman Manish Tewari told reporters.
He was responding to a media query on whether the Congress favoured action against the Law Minister.
Khurshid has already knocked at the door of law and has already initiated certain civil proceedings and criminal proceedings are under contemplation, Tewari said.
Noting that reports of certain findings by the CAG against the NGO were found to be incorrect as there has been no CAG report on the issue, he said each and every allegation will be subject to judicial scrutiny.
Tewari's remarks came as the war of attrition between Kejriwal and Khurshid escalated with the activist launching an indefinite protest demanding the Minister's resignation and arrest.
Khurshid's wife Louise, the project director of the NGO Dr Zakir Hussain Memorial Trust, lashed out at Kejriwal, terming the allegations of "money bungling" as "baseless innuendos" and accused him of "doing politics using the shoulders of the disabled".
She also trashed speculation about her husband resigning over the issue, saying there is no reason why her husband should step down. "There is no inquiry against Khurshid either by the central government or any report by the CAG. So why should he step down?" Louise said.