Prime Minister Manmohan Singh made a strong statement in Parliament on the Anna Hazare standoff on Wednesday morning, defending the Delhi Police's decision to arrest the Gandhian and calling the social activist's attempts to impose his Jan Lokpal Bill on Parliament as "totally misconceived".

Meanwhile, Anna Hazare, his team and their ever-swelling supporters dug their heels in and outside the Tihar Jail, demanding the government give in to all conditions for their fast at Jai Prakash Narain Park in central Delhi.

"All of us agree that the Lokpal Bill should be passed by Parliament. The question is who drafts the law and who passes the law," Singh said.

"It is the sole prerogative of Parliament to make laws and government has gone by well-settled principles," the Prime Minister said.

Stating Hazare's methods were fraught with "grave consequences" for Parliamentary democracy, Singh said he and his team must allow elected representatives of the people to do their job.

The Prime Minister detailed before members the sequence of events that led to Anna Hazare's arrest, saying his detention and that of his colleagues' was a "preventive measure" as they had rejected several key security suggestions by the Delhi Police.

Singh said the government "acknowledges" the right of citizens to hold peaceful protests, but reiterated Hazare refuses to come out "unless the government gives him an undertaking that he would be allowed to fast at Jai Prakash Narain park".

He said permission for peaceful protests is always given subject to "appropriate conditions".

Ignoring loud grumbles from the Opposition, Singh appealed to all political parties to ensure that Parliament functioned smoothly.

"The government does not seek any confrontation with any section of the society. But when some sections of society deliberately challenge the authority of the government and the prerogative of Parliament, it is the duty of the government to maintain peace and tranquility," he asserted after a demand by all Opposition parties that nothing short of the Prime Minister's statement would satisfy them.

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