He said he learnt of V.K. Singh's statement only from the media. "I feel extremely sad that the army had utilised money in this manner."
"The army should be apolitical and remain apolitical," said the union minister.
The former army chief told Times Now news channel that the army "transfers all the money to ministers in Jammu and Kashmir because there are various things to be done, as part of the stabilising factor in Jammu and Kashmir, as part of the activities to be organised".
He said the army had also funded the Kashmir Premiere League cricket tournament.
"It is nothing new...for the last so many years since the Independence of the country this has been going on. It has been a practice. This is a system to ensure that all the governments are helped," Singh told the news channel.