Union Home Minister Sushilkumar Shinde said government was ready to probe if beneficiaries were identified, a day after Gen(retd) Singh said that "certain ministers" in J and K are given money by the Army for "stability" and that this has been going on since Independence.
"V K Singh should name politicians. He should reveal the names (of those to whom money was allegedly paid). If details are given, we can investigate," Shinde said.
"I think time has come when a CBI inquiry should be held immediately to see what is the funding that the Army has done and who are the people that received these funds and how these funds have been utilised," he said.
Singh's remark drew a sharp reaction from the Congress with former Chief Minister Ghulam Nabi Azad expressing shock and a party spokesman slamming him for his "irresponsible" statement.
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"I think it's a very, very terrible statement that he has made. It must be investigated. The Army has nothing to do with funding of political parties. They should never do this. The Army should be kept apolitical," said Azad, a Union Minister.
Azad said he was shocked to hear about Singh's remark since he himself has been a Chief Minister of J and K.
"I have no knowledge about this and I am as curious as you are to know about the names of the persons who were being paid and who are being paid," he added.
Congress spokesperson P C Chacko said "irresponsible" statements from Singh brought "disgrace" to the Army.
"What he has said, I do not think he himself can prove it," Chacko said, adding, "Even a retired general is a general. He should not be making such statements."
J and K Sports minister and state Congress leader Taj Mohiuddin dared the former Army chief to name the ministers who were given funds.