However, Gandhi's name was later expunged by Deputy Chairman P J Kurien.
Swamy had raised the issue through an adjournment notice under Rule 267, his first intervention since he took oath in the House yesterday, and referred to the allegations made by Christian Michael, the middleman in the deal, through a letter in the High Court of Italy.
The naming of Gandhi led the Congress members to angrily storm into the Well, with a handful even moving closer to the treasury benches menacingly. Members of the treasury benches too got up on their seats to counter the opposition.
Before things got out of hand, Deputy Chairman P J Kurien adjourned the House for 10 minutes.
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When the House reassembled, Kurien expunged Swamy's reference to Gandhi saying he should not name a member who cannot come and defend himself or herself.
"I am not admonishing you as this is your first speech in the House" after being nominated to the Upper House. "But the name is expunged," Kurien said.
This did not satisfy the Congress members who were in the Well again shouting slogans against Swamy.
As Congress members continued to raise slogans from the Well, the Deputy Chairman again adjourned the House till noon.