The Lok Sabha MP from Amritsar also said it is not a "historic blunder at all" while accusing Shiromani Akali Dal (SAD) and Aam Admi Party (AAP) of playing politics on the matter by raking up the issue of 1984 anti-Sikh riots.
The former Punjab chief minister also dismissed opposition parties' allegations against the senior Congress leader, saying he is an "innocent" man.
"These are lies and total lies. Kamal Nath was not involved in anything," he said.
AAP and SAD yesterday criticised Congress for appointing Nath with Chief Minister Parkash Singh Badal terming it as "the ultimate insult to Sikhs".
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Hitting out at Congress, H S Phoolka, an advocate fighting for the victims of the 1984 riots, had said by appointing Nath, Congress had tried to rub salt into wounds of the victims.
"There will be no effect. Opposition parties are just making noise over this issue," he said.
"Everyone makes perception (about any person) because of politics. I do not think when a person who has not having anything to do..Will you throw out someone because of some perception...This is no solution, we will have to stand up for what is right and this man is innocent and I believe him he is innocent," Amarinder said.
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When asked whether Congress does not have any other leader to appoint as in-charge, the PCC chief said, "It is the decision of the party high command."
Defending Nath, Amarinder said nobody took his name when he was meeting victims from November 1 till November 4 in 1984 in Delhi.
"Nobody took his name in 22 years. Mishra Commission never summoned him. This issue came up when two people Mukhtiar Singh and Ajaib Singh were brought by H S Phoolka," he said.
Amarinder said Sheila Dikshit was elected as Chief Minister of Delhi when Nath was general secretary of the party. The entire Sikh community had then voted for Congress, he said.
He also took a dig at Chief Minister Parkash Singh Badal, saying "he should know that he had good relations with Kamal Nath".
"He had even praised him in 2010. And now he is criticising him. This is all politics," Amarinder said.
Referring to allegations levelled by AAP, he said, "At that time, most of AAP leaders were not even born. How could they make allegations now?"
On the issue of President holding assent to a bill that protects 21 AAP MLAs, Amarinder said these legislators were not redundant and there should be by-elections.
On the "Udta Punjab" issue, Amarinder said that reality should be shown to the generation.
"This is the truth. This is the reality which has to be shown. 78 per cent of Punjabi boys and girls are on drugs. 'Udta Punjab' is showing 'Ud Gya' Punjab. Already one generation has been destroyed. Let Punjab's new generation see what is happening here," he said.