As soon as the Assembly met, Congress MLA Nawang Rigzin Jora informed the Speaker that there were allegations that sugar meant for public distribution through CAPD outlets has been diverted to Anantnag Assembly constituency.
Anantnag Assembly constituency is going to bypoll on June 22 and Chief Minister Mehbooba Mufti is seeking election from the seat represented by her father Mufti Mohammad Sayeed.
"If he can prove it (charge), this government will resign. You are levelling baseless charges," Lone said.
Jora said he was raising the issue in the House as it had been reported in a newspaper.
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He was supported by National Conference MLA Ali Mohammad Sagar who said it was the job of the government to prove the allegations wrong.
"Whether the report is true or not, it is your job to prove it," Sagar said.
The issue had been raised by NC MLA from Homshalibugh, Abdul Majeed Larmi on Wednesday in the House.