MLA Rohan Khaunte said that he had enough documents to back his claim.
Vinsan Graphics, a Goa-based firm, was given the contract to host Goa Carnival and Food and Cultural Festival this year by the BJP-led government.
According to Khaunte, this agency had been favoured many times in the past. "I want to know why other agencies were sidelined for the contract," he asked.
But Tourism Minister Dilip Parulekar said the tendering process was transparent. "The tender was open for everyone," he said, and dared the MLA to place documents on the floor of the house.
In a written reply, Minister stated that Rs 3.48 crore were spent on the Carnival and Food Festival, held in February this year.