Speaking at the Times LitFest, the 90-year-old author said people should "forget" about other people's sensitivities, and let art, culture and literature flourish.
Had they worried about hurting people's sentiments, burning of widows and the practise of sati would never have been abolished, she said.
"The makers and the actress (of 'Padmavati') have been threatened by violence. This is Hindutva not Hinduism. The first teaching of Hinduism is non-violence," she said.
While Hindutva prescribed violence, Hinduism preached quite the opposite, she claimed.
"We have to hurt sentiments when the sentiments are wrong. We are 1 billion plus people and we must have 1 billion plus one sensitivities... so, some sensitivity is always in conflict with another," she said.
Also Read
"These are murders," she said, adding that silence was not an option.
"...because they have ordered us not to speak, we have decided to speak at every event that is open to us," she said.
Sahgal was among the over 40 writers who had returned their Sahitya Akademi awards in December 2015 to protest against the killings of rationalists Narendra Dabholkar, Govind Pansare and M M Kalburgi.
"We are in an undeclared dictatorship because if the people who disagree are being murdered, then it is a dictatorship," the writer claimed.
When asked if her cousin and former Indian Prime Minister Indira Gandhi's regime was similar to that of the current dispensation, Sahgal said it was "trying too hard to be like her".
"But, let me make a distinction. She was a democrat gone wrong, and the present dispensation is fascist. There can be no comparison," she claimed.
"One goes through life wondering if anyone is listening. And, now I know that some people have been listening and reading what I have written, and understand what I have stood for," she said while accepting the honour.
Disclaimer: No Business Standard Journalist was involved in creation of this content