Rajnath Singh was in Amreli to attend cooperative societies sector meeting, when he spoke about the deal.
Union Home Minister Rajnath Singh today advised Congress president Rahul Gandhi not to make allegations against the government on the Rafale issue without proof.
Mr Singh said the verification of the French media report, which quoted former French President Francois Hollande on the purchase of the Rafale fighter jets, will reveal the truth.
Mr Hollande was quoted in a French media report as purportedly saying that the Indian government proposed Anil Ambani-led Reliance Defence as the partner for Dassault Aviation in the Rs. 58,000 crore Rafale jet fighter deal and France did not have a choice.
"The government has issued a statement on the issue. Let the verification of the report take place. It will clear the situation, it will reveal the truth," Mr Singh told reporters in Amreli.
The home minister, who was in the city to attend a meeting of the cooperative societies sector, went on to advise Rahul Gandhi that he should not make allegations without proof.
"One should think four times before levelling any baseless allegation. One should not make allegations without proof," Mr Singh said to a question on what he would like to tell Mr Gandhi who has been dragging the name of Prime Minister Narendra Modi in the deal.
Mr Gandhi had dragged PM Modi into the imbroglio by alleging that the prime minister was involved in the Rafale "scam".
Reacting to Mr Hollande's reported remark, which is at variance with the Indian government's position on the Rafale deal, a defence ministry spokesman on Friday had said, "The report referring to former French President Hollande's statement that government of India insisted upon a particular firm as offset partner for Dassault Aviation in Rafale is being verified."
Earlier addressing members of 11 cooperative societies at a meeting in Amreli, the home minister asked them to enter the housing sector to fulfill the prime minister's dream of housing for all by 2022.
"Our prime minister has a dream that everyone in the country should have a house and his dream can be fulfilled easily if the cooperative sector comes forward (to take part) in the housing sector," Mr Singh said.
"People can get affordable houses if the cooperative sector enters the housing sector" he said.
Mr Singh told the gathering that the cooperative sector is active in Gujarat and Maharashtra and such activity is required in other states as well.
He claimed that the rate of interest on agriculture loans were reduced for the first time when Atal Bihari Vajpayee was prime minister, and he Union agriculture minister. "Now I am glad to know that cooperative banks here are giving agriculture loans on zero per cent interest," he said.
"India's prosperity depends on that of the farmers. If the farmer of the country is prosperous, no one can stop India from becoming prosperous," he said.