Parakh, 68, has said in his book that he had submitted his resignation after BJP MP Dharmendra Pradhan had insulted him during a parliamentary Standing Committee meeting and no response coming from the government.
"On August 17, 2005, I met the Prime Minister for a farewell call. I wanted to express my concern at the insult and humiliation that members of Parliament heap on civil servants and senior executives of public service undertakings," he said in his book published by Manas publications.
Parakh, against whom the CBI has registered a case in coal block allocation scam, said the Prime Minister expressed anguish and stated that "he (Singh) faced similar problems every day. But it would not be in the national interest if he was to offer his resignation on every such issue."
"I do not know if the country would have got a better Prime Minister if Manmohan Singh had resigned, instead of facing the humiliation of his own ministers not implementing or reversing his decision.
"By continuing to head a government in which he had little political authority, his image has been seriously dented by 2G scam and Coal-gate although he has had a spotless record of personal integrity," Parakh writes.
Parakh, while referring to the conversation with Singh, says in the book that it had become clear there was little chance of lasting reform in the coal sector with the limitations within which the Prime Minister functioned.