"...Intolerance levels remain high and widespread. Look at what happened to a Dalit student driven to suicide. This is also intolerance," Vajpeyi said on the sidelines of the ongoing Jaipur Literature festival here.
He had recently returned the D.Litt honour conferred to him by the Hyderabad Central University in protest against the "anti-dalit" attitude of authorities.
Vajpeyi said although Prime Minister Narendra Modi had voiced his grief at Rohith Vemula's suicide, he had underplayed the dalit issue.
He also slammed the government on its "slow response" to the Hyderabad scholar's suicide.
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"I believe that this young Dalit scholar was driven to suicide. Now they are saying that there will be a judicial commission to look into his death, which is good. But all belatedly. Why have you waited six days for this event to simmer?" Vajpeyi said.
The Hindi poet was among the earliest of about 40 writers who had returned their awards in the past few months to the Sahitya Akademi in protest against the literary body's silence on the killing of writer M M Kalburgi.
"The Sahitya Akademi passed a resolution and wrote a letter to us stating that there was no policy of taking back awards. But in action, it is yet to prove that it is exercising that autonomy," he said.
The writer said he is disappointed that some writers have relented and agreed to take back the awards they had returned.
Terming it as an "intolerance of excellence," Vajpeyi said that individuals are being termed anti-national for not being in agreement with the government.
"There is an intolerance of excellence. You have all kinds of people who enjoy no respect among their peers heading national institutions. That has not disappeared.
"There is intolerance of minorities not merely of religion or faith but also of ideas and belief. If you say that you don't agree with the government then you're termed anti-national. All these levels of intolerance remain," he said.