In a letter to party President Sonia Gandhi, Sambasiva Rao has described the government's decision as "outrageous and revolting which goes counter to Congress party's avowed policy of combating corruption at high places."
"It unwittingly gives a big stick to Anna Hazare and co to beat Congress with", he said.
Sambasiva Rao pointed out that Tamil Nadu Chief Minister Jayalalithaa, former Karnataka Chief Minister B S Yeddyurappa and former Telecom Minister A.Raja, who are facing charges of corruption, were meeting their legal expenses from their personal funds.
He said the state's Congress government's decision sends "wrong signals" that the party is rewarding corruption.