Union minister Piyush Goyal said Mehta had sought Law Minister Ravi Shankar Prasad's permission to appear for Jay and the approval was granted.
Goyal insisted that the purpose of the story was to defame the BJP and its government by making derogatory and defamatory imputations.
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"We believe that he (Jay) has been wronged and he must get justice. There is no harm if the best of lawyers appear for him. An ASG can appear in a matter between two private parties after taking permission," he told reporters.
Jay Amit Shah today filed a criminal defamation case in a metropolitan court in Gujarat against seven people including the report's author, and the editor and owner of the news portal.
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