"The incident will set a bad example for existing and future investments in Haryana," Chautala told reporters here.
He criticised the Haryana government for its inability to tackle the situation.
"Law and order situation has worsened and the Maruti Suzuki's Manesar plant incident recently is an example of this. The government failed to anticipate the trouble despite early warning signals," the former chief minister said.
A senior Maruti official was killed and 100 injured in violence at the plant recently. The police has arrested over 100 workers following the incident.
After forming Special Investigation Team (SIT) to probe the incident, the state government had appointed criminal lawyer K T S Tulsi as the special prosecutor for the trial.