The Lok Sabha saw a brief impromptu discussion on the issue during which members cutting across party lines accused the government of failing to properly implement the Rs 52,000 crore scheme.
The House saw an hour-long adjournment over the issue after which the government agreed to have a full-fledged debate on it.
In the Rajya Sabha, Prime Minister Manmohan Singh made a suo motu intervention after BJP members created uproar, citing the CAG report which was tabled yesterday.
"The reference is to the CAG report on loan waiver scheme. This is a matter which should be entrusted to the Public Accounts Committee as per normal practice. If there are any irregularities, which have been shown, I assure the House that we will take stringent possible action against the defaulters," Singh said.
However, the opposition was unimpressed by Singh's assurance and trooped into the Well of the Rajya Sabha raising slogans against the government.
In the Lok Sabha, Leader of the Opposition Sushma Swaraj led the attack on the government claiming that thousands of actual beneficiaries were denied benefits of the scheme, while those who were ineligible got the relief.
Leaders of several parties including JD-U, Left, SP, BSP, BJD, Shiv Sena, SAD, TDP and JD(S) attacked the government on the implementation of the scheme.