"That is a lie and an indication of the way politicians from India's ruling party have been behaving after losing self control," said Lab Dev Mishra, Nepal chief, Patanjali YogSamiti.
"Acharya Balkrishna has been living in India since his childhood. It is absurd that he can be involved in criminal activities in Nepal."
Mishra said that Balkrishna acquired an Indian passport by fraud can only be validated after government made an official statement on how the document was procured and not merely on the basis of a minister's remark.
News@24 a Nepali television agency took on remarks made by Digvijay Singh as its "Issue of the Day" and talked to people who knew Balkrishna from their childhood.
"He was a simple village boy who was liked by all and never showed any criminal tendency," said Nepali journalist, Narayan Bhandari, who came from the same district as Balkrishna.
Balakrishna who from childhood was interested in ayurveda was sent to Haridwar, India when he was young to pursue his education.
"He acquired an impressive knowledge of medicinal herbs. When he came to Nepal from time to time, he would distribute ayurvedic medicines freely in the villages or at a low cost," said Bhandari.
"There are no criminal cases against Balkrishna in Syangja," said Bhandari who had spoken to Balkrishna's brother in Banaras further adding that he was safe and not missing.