The piece of cloth has an artistic work of handicraft prepared by a differently-abled girl and was signed by Modi when she met him along with celebrity chef Vikas Khanna, who had prepared the menu for the Prime Minister's dinner with Fortune 500 CEOs last night.
As the chef displayed the signed piece of cloth to the media, social media was abuzz with criticism and opposition Congress latched on to it.
Noronha, Director General (Media and Communication), Press Information Bureau, said in New Delhi that the piece of cloth was a work of handicraft prepared by a differently-abled girl and the Prime Minister had autographed it on compassionate basis.
"The piece of cloth does not have white colour nor the wheel....It has been prepared by the girl with her toe and the Prime Minister was compassionate," he said.
He termed as "absolutely false" that it had been confiscated.
He said Modi must look within and take corrective action as respect for the national flag is the responsibility of 125 crore people, more so for the Prime Minister.
Congress leader Manish Tewari tweeted, "Has PM read Para 2.1 sub para 6& Para 3.28 of Flag Code 2002 that states lettering on National Flag is misuse.3 yrs jail under PINH Act 2003."
The Indian Flag Code, 2002, states that putting any kind of inscription upon the Indian national flag is construed as disrespect to the flag. It also states that lettering of any kind shall not be put on the tricolor.
Prime Minister told the chef that he had done him proud by preparing an elaborate menu for his guests -- over 50 top American CEOs who met him at the Waldorf Astoria hotel here.
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