Minister of Commerce Rishath Bathiyutheen was accused of carrying out illegal settlements of conflict-displaced Muslims in Wilpattu area.
But the Muslim Council of Sri Lanka claimed there had been no infringement by Muslims on the land reservations in Wilpattu.
In a counter accusation, the council alleged that while some groups are claiming that Muslims have been resettled illegally in Wilpattu, several Sinhalese families from Hambantota in the south have been moved to the area.
The Muslim Council said that displaced Muslims had been expelled from the north by the LTTE in 1990.
Government officials said there were no illegal or unauthorised settlements and that due process had been followed in allocating land for their resettlement.