Mukherjee also said he was left "shell-shocked and flabbergasted" at his ouster from the Rajiv Gandhi Cabinet.
In the second volume of his memoir, The Turbulent Years: 1980-96, released today by Vice President Hamid Ansari, Mukherjee says "Many stories have been circulated that I aspired to be the interim Prime Minister, that I had staked claim and had to be persuaded otherwise.
"And that this created misgivings in Rajiv Gandhi's mind. These stories are completely false and spiteful."
"I had heard no rumours, nor had anyone in the party ever vaguely hinted at it. As it happened, P V Narsimha Rao, too, was on tenterhooks, calling me several times to check if I had received a call.
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"When I learnt of my ouster from the Cabinet, I was shell-shocked and flabbergasted. I could not believe it. But I composed myself, and sat alongside my wife as she watched the swearing-in ceremony on television," Mukherjee, who later wrote to Urban Development Ministry to allot him a smaller house instead of ministerial allocation, said.
"To the question of why he dropped me from the Cabinet and expelled me from the party, all I can say is that he made mistakes and so did I. He let others influence him and listened to their calumnies against me. I let my frustration overtake my patience," he said.
Talking about the Operation Blue Star in 1984 to flush out terrorists from Golden Temple in Amritsar, Mukherjee recalled that Indira Gandhi "understood the situation well and was clear that there was no other option. Aware that her own life was at risk, she took a conscious decision to go ahead in the best interest of the nation".
"Such decisions are always taken based on the conditions prevailing at that time. The situation in Punjab was abnormal. Urgent action was needed to put an end to the indiscriminate killings, the misuse of religious sites for terrorist activities and all efforts to break up the Indian union.
"Intelligence officials and the Army both expressed confidence that they would be able to neutralise the militants in the Golden temple complex without much difficulty. No one anticipated the protracted resistance," he said.
"Its wounds took a long time to heal and, even today, residual incidents do occur from time to time," he said.