The government which had chosen to steer clear of the Indian Premier League all this while, said on Monday that all aspects of the IPL including the sources and routes of funding of the teams were being probed and assured Parliament that "no guilty or wrong-doer" will be spared.

As the IPL came under the government's scanner, the cash-rich league's commissioner Lalit Modi rubbished allegations of betting and money laundering in the event and threatened to take legal action against a leading business daily which had made the accusations.

With Opposition parties training their guns on the government over the IPL dealings in the wake of the Lalit Modi-Shashi Tharoor row and the controversy over financial issues relating to IPL teams, finance minister Pranab Mukherjee told the Lok Sabha, "the concerned department has already started investigation process (into the IPL episode)."

Mukherjee assured members that "appropriate action as per law" would be taken if any wrongdoing was found in the manner the IPL was funded.

"The concerned department has already started investigation process (into the IPL episode). All aspects including sources of funding and routes through which the funds arrived would be looked into. Appropriate action as per law would be taken. No guilty or wrong-doer will be spared," Mukherjee said.

Tharoor also met Mukherjee, a day after he resigned from the union council of ministers capping the week-long drama over his role in IPL Kochi.

Senior Congress leader and overseas indians minister Vayalar Ravi shared the sentiments of the opposition on the IPL issue and characterised the cricket league as "glorified gambling".

"It is for the government to look into the whole system. What is the IPL, who are the people, where from the money comes is a matter of serious concern," Ravi said.

As soon as the Lok Sabha met for the day, Lalu Prasad (RJD), Mulayam Singh Yadav (SP) and Sharad Yadav (JD-U) were on their feet demanding that government disband the IPL which according to them has become a "betting and gambling ring".

Prasad wanted the government to take over the IPL and the BCCI. He also wanted a probe into the alleged black money in the glitzy cricket league.

Corporate affairs minister Salman Khurshid rejected suggestions of a suo motu action by his ministry into IPL affairs.

CPI-M leader Brinda Karat said Shashi Tharoor's resignation does not put a "full stop" to the IPL issue.

Modi, who is in Dubai to attend the ICC's Executive Board meeting on behalf of BCCI President Shashank Manohar, said the charges in the business daily were "nonsense" and aimed at discrediting the Twenty20 tournament.