Singh, a former Union Minister and five-time Chief Minister, said the charges levelled against him were part of a "motivated campaign" against him ahead of next month's Assembly elections in Himachal Pradesh.
Dubbing the graft allegations as a "cheap political stunt", Singh, who is leading the Congress poll campaign in the state, said he was ready to face "any inquiry" by any agency in this regard.
Upping the ante, BJP claimed there was ample evidence against Singh for receiving money from the private steel firm and demanded an immediate probe into the matter.
"Everyday a new skeleton of corruption tumbles out of the Congress closet. The latest in this series is VBS. The then Steel Minister is suspected to have received Rs 2.28 crore illegally from a private firm... As it is an issue of quid pro quo arrangement, it needs to be investigated immediately," BJP spokesperson Prakash Javadekar said.
He was referring to the seizure of diaries by the IT department from Ispat Industries in which there is an entry of a payment of Rs 2.28 crore to one VBS. BJP has alleged it refers to Virbhadra Singh.
Singh said, "This is totally false, malicious and motivated and I strongly deny this. Furthermore I am willing to face any inquiry in this regard by any agency."
He claimed that the issue was being raked up in the media by his detractors to influence the Himachal Pradesh Assembly elections.(MORE)