The commerce and industry ministry came out with full-page newspaper advertisements seeking to clear "myths" about 51percent foreign direct investment in multi-brand retail.

A senior ministry official and its spokesman also disagreed with Tamil Nadu Chief Minister J Jayalalithaa, who said that states were not consulted on the crucial reforms.

“Suggestions from many state governments were received and incorporated in the policy framework. Besides, views of all major stakeholders, including farmers' organisations, traders and the industry associations were invited to the proposals in the discussion paper, which remained in the public domain for long," he said.

The issue has also been widely debated in the Parliamentary Standing Committee attached to the ministry, he added.

Tamil Nadu Chief Minister, in a strongly-worded statement issued in Chennai, slammed the Centre, saying, "While Parliament is in session, this move of the Government of India. without even consulting state governments is unprecedented and indicates the overweening arrogance of the UPA government".

UP Chief Minister Mayawati has attacked the UPA Government and the Congress, stating the FDI in retail would make her state "bankrupt".

Commerce and Industry Minister Anand Sharma strongly feels that FDI in retail is among the key agenda of the government, which must be pushed ahead.

The Union Cabinet had on November 24 decided to allow 51percent FDI in multi-brand retail and removed the 51percent FDI cap on single brand retail.