He told a hurriedly convened press conference here that Bedi should be replaced as she had been "encroaching upon the powers and rights of a democratically elected government".
Alleging that she was functioning like a "maharani", he claimed that ever since Bedi assumed charge, she had been functioning under the impression that none could question her and that she was all powerful in the administration.
Kamalakannan, elected from Karaikal, also condemned the "off the cuff" comment by BJP national president Amit Shah during his recent visit to Puducherry that "the Narayanasamy- led Puducherry government is the most corrupt".
The comment is "unfair and highly condemnable", he said.
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He disputed the BJP president's claim that the Centre had raised allocations to Puducherry in the last three years by 613 per cent for various schemes.
"In my own departments like agriculture and electricity no hike has been shown in funds allocation. This is an incorrect and unjustified claim on the part of the BJP leader," he claimed.
"We are of the firm view that there was no violation of rules and specific procedures in the working of CENTAC," he said.
The CBI had yesterday searched the CENTAC office here after the Lt Governor's office sought a probe into alleged corruption in admission to post-graduate courses by private medical colleges.
He also alleged that when the Lt Governor's approval was sought for waiver of Rs 22 crore due as loans to cooperative societies from the farmers, she did not give her nod.
The minister wanted to know what contribution Bedi had made for development of Puducherry since she took over as the Lt Governor.
"She, on the other hand, has been putting obstacles in the path of development of the Union Territory," he alleged, adding that Bedi had been making baseless allegations against the government.