Devender Singh Rana, a close aide of Chief Minister Omar Abdullah since 2002, said he has asked his lawyer to file a defamation suit against Lone for making "reckless and false allegations" against him.
Lone, who had unsuccessfully contested the Lok Sabha polls in 2009, had claimed that Rana was misusing his official position for pressurising the cable operators in Kashmir to air 'Take-1' and 'JK Media' channels owned by him.
Rana threatened Lone with a defamation suit, while expressing shock and dismay over the "irresponsible and defamatory statement".
"Lone has maligned my reputation and tarnished my image by levelling purely false and concocted allegations which are frivolous and baseless in content and as such deserve no cognisance," Rana said in a statement.
"I am fully aware of the reasons of the pangs of Sajjad Lone for the cable industry, but I would leave it to his conscience to introspect and decide," he added.
He challenged Lone to prove even a single instance in the last three and half years when he called up any government functionary for any of his business interests.
"I have resigned from all executive positions of my businesses before assuming the office in the government and so have no link whatsoever with the day to day running of my businesses," he said.
