Speaking to reporters here, Naidu said the manner of Sinha's appointment, which was made before the Select Committee of Rajya Sabha tabled its report, indicated that government wanted to pre-empt the Committee's recommendations.
Congress tried to undermine or defame institutions whenever it faced trouble, Naidu said, dubbing Sinha as "yes-man".
"UPA is misusing the institutions to gain political mileage," he said.
He also attacked the government's justification that it would take time to enact a law to incorporate the Committee's recommendations.
Naidu reminded that in 2010 UPA government had approved a resolution to create upper house in Tamil Nadu "overnight" and rushed it through the Parliament, and said in the present case it could have adopted the same policy.
On former CAG official R P Singh's allegations against senior BJP leader Murli Manohar Joshi, Naidu said this was a fresh attempt to malign CAG and Public Accounts Committee by "dirty tricks department" of Congress and the government.
"It is ridiculous on the part of a former CAG official to say that he had no option other than signing the report as ordered by his superior," Naidu said.