"The statement is aimed at only watering down the Islamic terrorism. I condemn terrorism in any form perpetrated by anyone," he told reporters here.
Swamy said no one was holding all Muslims to be terrorists and said extremist activities from persons of any faith was condemnable.
On RSS connections of the accused persons, he said Congressmen Jagdish Tytler and Sajjan Kumar were accused in connection with the anti-sikh riots.
"You (Centre) are helping Pakistan and doing it deliberately," he said claiming US officials in the know of things about the Samjhautha Express blast had informed him that the banned LeT was behind the attack.
Shinde had courted controversy with his remarks at the Jaipur Congress conclave that BJP and RSS were promoting terror, with the BJP now training its guns against him and the latter describing him as a "darling of the real terrorists."
On the power shift in BJP, he described it as an "internal affair" of that party but said the "whole campaign by the media against Nitin Gadkari is unfair."
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On the alleged fertilizer scam, in which connection Chief Minister Jayalalithaa has demanded sacking of Union Minister MK alagiri, Swamy said he mulled moving the court.
To a question in this connection, he said even if a CBI probe is ordered, it should be a "court-monitored" one.
On the controversy surrounding actor-director Kamal Haasan's "Vishwaroopam", which has raised the hackles of Muslim groups, Swamy said the actor had a right to produce a movie of his choice.