The Opposition Congress backed the BJP legislator and amidst the uproar, the Chair adjourned the House for 30 minutes.
However, the government denied the charge.
Prajapati, who represents Chandla Constituency, said during the Question Hour that 800-1,000 trucks ferry illegally -mined sand from Ken river daily at Chandla in Chhattarpur district, close to Uttar Pradesh.
He claimed that the people engaged in illegal mining, mainly come from Uttar Pradesh and they fire randomly which has created a reign of terror in the area.
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The MLA also claimed that two persons were killed and several others injured in firing at Fattepur and Mawaighat areas on March 10 this year.
Prajapati demanded action against illegal mining and sought to know from the government the revenue losses due to such unlawful business (mining).
Congress members Ramniwas Rawat, Jitu Patwari, Tarun Bhanot and others joined the BJP member and took pot shot at the government saying the situation now has come to such an extent that its own members are exposing the wrongdoing.
"Now it has climbed to Rs 3,500 (royalty) crore which itself speaks that illegal mining is checked," he said.
The Minister denied charge of illegal mining and also the alleged firing incident.
Prajapati said he was telling the truth and demanded an FIR be registered against the officer concerned.
Acting Leader of Opposition Bala Bachchan, former Leader
of Opposition Ajay Singh and senior Congress member Ramniwas Rawat said Prajapati's statement carries weight as he is ready to be booked if his accusations were false.
Intervening in the matter, Panchayat and Rural Development Minister Gopal Bhargava said for the past 10 days the Opposition was raking up the corruption issue just to stall the proceedings of the House.
This angered the Congress members, who trooped into the Well shouting, "shame, shame" and demanded stern action against illegal mining.
Meanwhile, Prajapati did not budge and kept demanding action against the officer concerned for allegedly failing to check illegal mining.
Amid the bedlam, Shukla asked Prajapati to come to him with his grievances and assured him of an inquiry into it to address his concerns.
However, the Minister's assurance pacified neither Prajapati nor the Opposition, following which the Speaker Dr Sitasharan Sharma adjourned the House for 30 minutes.
Earlier, another BJP MLA Bhadur Singh Chauhan raised the issue of illegal sand mining in Ujjain alleging the district Mining Officer was soft to check the unauthorised activity.
Chauhan said after he raised the issue earlier in the House, a case was registered in this regard but the government officials are not pursuing it with the competent court to punish the guilty as required.