The government introduced the controversial bill in the lower house inspiring protests from the Opposition parties.
"It's contrary to articles of the constitution. It's illegal and unconstitutional," BJP leader Yashwant Sinha said in the house, and accused the government of acting under US pressure.
The government has to get the legislation passed if it wants to make the 2008 India-US 123 civil nuclear cooperation agreement functional.
The Congress-led UPA has been facing opposition over the nuclear bill over the past year.