Goel put up a hoarding, bearing images and stanzas eulogising Modi along with the Mahatma, in front of his official residence in Ashoka Road, just opposite the BJP headquarters.
"De di duniya me pahchan nai, uncha kiya bhal, Sabarmati ke sant tune kar diya kamal (Gave a new identity in the world, increased stature; Sabarmati's saint, you have done wonders)," it said describing Modi, carrying his picture.
The lines are a play on a song from the 1954 movie 'Jagriti'.
The move invited political reactions with Congress hitting out at Goel, and JD(U), AAP taking jibes at BJP.
"BJP's Vijay Goel compares Mahatma Gandhi with PM.This is sycophancy at its worst. Even a self obsessed man like Mr Modi may feel embarrassed," Congress spokesperson Shakeel Ahmed tweeted.
When contacted, Goel said that he was "not comparing" the personalities who he said were "saints in their own rights".
"While Gandhi had liberated the country, Modi is liberating us from corruption, poverty and has invigorated the entire nation by his relentless work. Modi is working like a saint by sacrificing his personal life for the country. Even the foreign countries and their media are admitting this," Goel said.
"Goelji could not become a minister. He is very pained at not being included into the Council of Ministers. Goel is my friend. He should have been given a place there. Since he is not getting that, he is doing all this," Yadav said.
AAP spokesperson Ashutosh said the situation was "amusing".
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