Government came under attack in the Rajya Sabha over handling of domestic matters like economy and corruption as also its foreign policy in the wake of Indian prisoner Sarabjit Singh's death in Pakistan and Chinese incursion.
BJP targeted Prime Minister Manmohan Singh in connection with coal block allocation and other scams.
Attacking the government for "subverting" institutions, including the JPC, Leader of Opposition in Rajya Sabha Arun Jaitley said these issues raised were "contradictions on the eve of the winding up of the Raj".
He said the needle of suspicion points to the Prime Minister in the coal scam investigations, as he was the Coal Minister when the coal block allocations were made.
Jaitley said this was the first time the investigating agency shared its reports with the possible suspects in the coal block scam.
"These are contradictions on the eve of the winding up of the Raj, it is very clear today," he said, as he raised various issues that pointed to the failure of the government's policies in handling them.
"This government has inherited an Indian dream. It has converted it into a nightmare. This is what people of India feel," Jaitley said as his party staged a walkout as the Finance and Railway Bills were taken up.
Jaitley attacked the government on the Chinese incursion into Indian territory, saying it is not able to understand the situation as "no reaction was coming up".
On government's interference in the CBI, he said, "Whatever facts have come forward, some businessmen are benefitting...the needle of suspicion is towards the Prime Minister, who was the Coal Minister at the time. Law Minister is giving a reply, we are not interested."
Others who joined the BJP in its attack on government included leaders of BSP, AIADMK, DMK and SP, while Trinamool Congress staged a walkout as they were not allowed to speak.
Condemning the brutal attack and killing of Sarabjit Singh in Pakistan, Jaitley said "today is a day of sadness, regret and anguish" in view of the way Sarabjit Singh was killed in Pakistan.
"I am sure the whole Parliament will raise its voice unanimously," he said as he attacked the country's foreign policy saying, "It is a sample of how our tottering government has turned coward."
He insisted that this could not have happened "without the total involvement of Pakistan government and police forces".
On Prime Minister asking if he was an accused, Jaitley said, "May be he's not...but there is a needle of suspicion on PMO officials. They are possible targets of investigation."
Jaitley said, "This is the first time the investigating agency has shared its report with the suspects," as BJP members cried "shame, shame".
The Leader of Opposition also attacked government for "subverting" every institution and said the JPC is giving a clean chit to the accused and guilty, and ruling party by its mere strength in the panel has "politicised the Parliamentary probe so that truth does not come out".
He said his party was unable to support the government but did not want to come between constitutional provisions, "My party is not ready to cooperate with this government. We do not want to obstruct the financial bills so we walk out."
Satish Chandra Misra (BSP) said it was unfortunate that discussions were held on various issues outside the House and not inside. Condemning the killing of Sarabjit Singh, he urged Parliament to condemn it and bring a resolution in this regard and urged government to at least bring his body back. BSP, however, supported the Finance and Railway Bills.
On China, Misra said it was a "serious issue" and must be dealt with seriously by government and take appropriate steps.
Tapan Kumar Sen (CPI-M) also attacked the government and asked it "to take serious and pro-active initiative keeping the Indian interests fully protective".