Katju said he had also issued a strong statement against
Himachal Pradesh Chief Minister Virbhadra Singh when he had told a mediaperson that he would break his camera.
"Mr Jaitley is clearly guilty of twisting facts. He has criticised me for a report against the Bihar government for suppressing press freedom," he said.
"That was not my report, but that of a three-member team of the members of the Press Council of India. Here again, Mr. Jaitley has twisted facts," Katju alleged.
The PCI chief said "my request to Mr Arun Jaitley is to retire from politics and take sanyas and he will be very happy. At least he will not be able to twist facts then."
Referring to Katju's remarks against the governments of Bihar and Gujarat, Jaitley said he was yet to read a comment from Katju which prefers meritocracy over dynasty as an instrument of leadership creation.
"Obviously, such comments would embarrass those who desire to legitimise India as a Dynastic Democracy. The crusader in Justice Katju subjects himself to self-censorship when UPA's corruption from the 2G spectrum allocation to the coal block allocation are to be commented upon," he said.
Terming the remarks as political, Jaitley asked "should not a former judge who currently occupies a quasi-judicial office as Chairman of the Press Council of India, either quit before actively participating in politics or be sacked."
"Retired judges must remember that the rental for occupying a Lutyen's bungalow post retirement has to be political neutrality not political participation," he said.
The PCI Chairman has always been a retired judge of the Supreme Court, Jaitley said adding that he deals with issues relating to the freedom of press, possible encroachment of the said freedom and also hears complaints relating to lack of professionalism in media reporting and comment.
"The Chairman of the Press Council discharges a statutory job. His job requires fairness, impartiality and political neutrality. Additionally a Judge, whether sitting or retired, is expected to conduct himself with sobriety, dignity and grace. He cannot be loud, crude, outlandish or behave like a megalomaniac," the BJP leader said.