Prasad alleged that Aiyar targetted Modi because the latter had questioned the delayed conferring of Bharat Ratna -- the country's highest civilian award -- on Dalit icon Ambedkar and Sardar Vallabhbhai Patel.
"Modi was targeted by Aiyar because he had questioned why Dr B R Ambedkar was given Bharat Ratna in 1990 when he had died in 1956.
Blasting the Congress, Prasad said Aiyar's remarks reflected the "feudal arrogance" of the party leaders.
"This (the remarks) is the feudal arrogance of the Congress, as they could not digest the fact that the son of a poor tea seller has become the prime minister. What Aiyar said is an insult to all the poor and downtrodden citizens of Gujarat and of this country," Prasad said.
Prasad said Congress leaders believed that only a heir of the Nehru-Gandhi family is capable of leading the country, which reflects a "highly deplorable mindset".
"There is very deplorable and feudal mindset behind this condemnable observation that only a 'waris' (heir) of the Gandhi-Nehru family can run this country and only they are capable of doing so," the BJP leader said.
Prasad said Modi was targeted on earlier occasions as well by Congress leaders "as part of a design" because he comes from a "poor family".
Prasad said Aiyar was a close friend of former prime minister Rajiv Gandhi and they had studied together in school.
Left red-faced by Aiyar's remarks, Congress suspended him from the primary membership of the party.
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