Jaiswal backed the statement made by the Prime Minister's Office (PMO), which said Singh took the decision based on the merits of the case.
"Sheikh chilliyon ke dwara diye gaye kisi bayan par koi comment hum nahi karna chahte (I do not want to comment on statements given by daydreamers)," he told reporters here.
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The CBI has named Parakh and Hindalco Chairman Kumar Mangalam Birla in its FIR on alleged irregularities in the allocation, triggering an outrage in the industry.
In response to the FIR, Parakh had said the Prime Minister, who held the coal portfolio when the allocation was made, was equally responsible for any irregularity.
Parakh could not be immediately reached for comments.
Defending the Prime Minister, Jaiswal said he fully agreed with the statement issued by the PMO on October 19 that the allocation was made following due process of law and the merits of the case.
The decision was primarily based on a strong recommendation for such allocation by Odisha Chief Minister Naveen Patnaik.
"I cent per cent agree with the statement issued by the PMO," he said.
The minister, however, refused to comment on the CBI filing the FIR in which Birla was named, saying the inquiry was "being monitored by the Supreme Court.
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