The minister said that he has put forward his demand before Hooda recently "but he has declined to accept it".
A rally had also been planned at Rewari next month if Hooda would have given his nod but that has now been put off, he added.
"When there can be three to four universities in Rohtak, Sonepat and Hisar, why can't Rewari (in south Haryana) have one," he said.
Maintaining that his demand was genuine as he was the representative of people of Rewari, he pointed out that his comments should not be seen as pointing fingers at anyone.
He said that he would be meeting the party high command soon and apprise them about the matter to ensure that all parts of the state get equitable share in incentives from the government.
However, Haryana Congress President, Phool Chand Mullana dismissed that there was a regional bias.
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"The Congress government believes in and has undertaken equitable development of all areas. I don't think anyone can point a finger accusing us of regional discrimination," he said here.
Over a year back, Yadav had raised objections to Haryana's land acquisition policy and remained at loggerheads with Hooda.
He has also joined hands with Congress' Gurgaon MP and former Minister, Rao Inderjit Singh, who too has been critical of Hooda and his policies.
Main opposition INLD and the Haryana Janhit Congress have been accusing the Hooda government of regional discrimination in carrying out development works.
With Hooda's own minister now raising the issue, it is likely to give fodder to the opposition before beginning of the Assembly session this Friday, which is expected to be stormy in the wake of former minister Gopal Kanda being embroiled in an abetment to suicide case.