Manohar Parrikar is admitted at the AIIMS in New Delhi with a pancreatic ailment.
The Congress said Sunday Prime Minister Narendra Modi and BJP president Amit Shah did not dare seek Goa Chief Minister Manohar Parrikar's resignation as he had information on the Rafale deal he could use to "blackmail" them.
Goa Pradesh Congress Committee president Girish Chodankar levelled the charge after the BJP announced that Mr Parrikar will continue as chief minister, ending days of speculation over a leadership change.
"I am sure Manohar Parrikar must be having a lot of information about the Rafale deal as he was the Union defence minister at that time," Mr Chodankar told reporters.
Mr Parrikar is admitted at the All India Institute of Medical Sciences in New Delhi with a pancreatic ailment, and the Congress has been pitching for a floor test in the Goa Legislative Assembly.
The Congress leader claimed PM Modi and Mr Shah lacked the courage to ask Parrikar to resign from the post because of the Rafale fighter deal.
He repeated the Congress allegation that the deal for 36 French aircraft was "a huge scam" which also involved Modi.
The Bharatiya Janata Party had sent three central observers last weekend to take stock of the political situation after Parrikar was admitted at AIIMS.
Mr Chodankar claimed the state administration had "collapsed" as the ailing CM has not been able to find time for it for the last seven months.
He said besides Mr Parrikar, two other ministers are admitted in hospital.
If this continued, Goa itself will end up in the ICU, he said.
In the 40-member state assembly, the Parrikar government has the support of 23 MLAs.
The BJP has 14 MLAs against 16 of the Congress, and Mr Parrikar's appeal was a key reason it secured support from a cross-section of legislators following last year elections.