Responding to a question on why Prime Minister Narendra Modi is silent on the issue and whether Rajasthan Chief Minister Vasundhara Raje will resign following allegations of backing the former IPL chief's UK immigration plea secretly, Jaitley said he did not "want to comment on him (Lalit Modi)".
However, in response to another question, Jaitley said that Modi's Rs 11 crore transaction with BJP leader and Raje's son Dushyant Singh was a "commercial" one.
The Minister was asked: "What is the government doing on the transaction of Rs 11 crore between Lalit Modi and Dushyant Singh?"
The reporter also asked Jaitley if Raje would resign and why Prime Minister Modi is silent on the issue, and will Dushyant be expelled from the party.
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Jaitley responded: "How the government could be concerned with a several year old loan transaction between... Which is a commercial loan transaction by check with all banking approvals in a declared loan transaction."
The Raje episode came as a further embarrassment to the BJP and its government after it emerged that Swaraj helped Modi obtain British travel documents.
Though Swaraj has maintained she acted on "humanitarian" grounds by signing consent papers for surgery of his wife suffering from cancer, the issue kicked up a storm with the opposition seeking her resignation over "impropriety" and conflict of interest.
Queried further on whether he favoured stricter laws, Jaitley said: "This is not the time for me to comment."
The controversy surrounding Lalit Modi is the BJP government's first major political crisis in more than a year since it assumed office.