Yashwant Sinha said his 'Rashtra Manch', a political action group, would start a movement against the policies of the Central government.
Trinamool Congress MP Dinesh Trivedi, Congress MP Renuka Chowdhury, NCP MP Majeed Memon, Aam Aadmi Party MP Sanjay Singh, former Gujarat chief minister Suresh Mehta and JD(U) leader Pavan Varma were among those who attended the event marking the launch of the front.
RLD leader Jayant Chaudhary and former Union ministers Som Pal and Harmohan Dhawan were also present.
Yashwant Sinha likened the present situation to that which prevailed 70 years ago when Mahatma Gandhi was assassinated, on this day, and said democracy and its institutions were under attack.
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He claimed that the Narendra Modi government had reduced farmers to "the status of beggars" and accused it of presenting "made to order" statistics to suit its interests.
"It is not an organisation but a national movement," he said, hitting out at the government's economic and foreign policies.
"Everybody in the BJP is living in fear. We are not," he said.
Dialogue and debate in the country had become "coarse, one-sided and dangerous", he added.
"It seems mob has the job of giving justice," he claimed.
The first leg of the Budget Session of Parliament would effectively have only four working days, something that was unprecedented, he said.
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