He termed the "muscular military" approach to Kashmir as the "biggest mistake" of the government and claimed it has only driven more youths towards militancy.
On the occasion of the 10th anniversary of the country's worst terror attack, Chidambaram asked whether these institutions were not important to construct a comprehensive security architecture.
The court however extended till December 18 the protection granted to Chidambaram and his son Karti from arrest after the Central Bureau of Investigation (CBI) said it needed two weeks to get sanction against other accused in the case.
The submissions have been made by the father-son duo in their rejoinder filed in response to the replies of the probe agencies.
In an election rally in Chhattisgarh on Friday, Modi had asked the Congress to make a Congressman, from outside the Nehru-Gandhi family, president of the party for five years.
Chidambaram said if the government did not need any more money this financial year, why was it "mounting pressure" on the central bank in the last four months of its tenure
The writ petitions were filed challenging the criminal prosecution initiated by the I-T Department against them.
Additional Solicitor General Tusshar Mehta, appearing for the CBI and ED, told CBI Special Judge O P Saini, "We have to meet a deadline and he (P Chidambaram) is not cooperating."
The senior Congress leader said that the governments he was a part of in the past had never used Section 7 of the Reserve Bank of India Act of 1934, under which a direct order can be issued by the government to the central bank to carry out its wishes in "public interest".
The former minister said these concerns would be incorporated in the Congress manifesto
In a series of tweets, the former finance and home minister referred to the Jammu and Kashmir governor's reported criticism of the National Conference and Peoples Democratic Party for their alleged frequent reference to Pakistan's role in resolving the Kashmir issue.
Former Finance Minister also tagged Air India, Civil Aviation Minister Suresh Prabhu and Minister of State for Civil Aviation Jayant Sinha in the tweet.
Chidambaram's remarks came after the government Wednesday sent CBI Director Alok Verma and Special Director Rakesh Asthana on leave, as the two officers were involved in a bitter spat.
The agency has named nine accused in the case including Chidambaram, S. Bhaskaraman and four Maxis companies.
A division bench of Justices S Manikumar and Subramonium Prasad, has already reserved its order on the main appeals moved by Chidambaram's wife, son and daughter-in-law, challenging the prosecution initiated against them by the Income Tax department under the Black Money Act.
The opposition led by the Congress has been accusing the government of benefiting Anil Ambani's Reliance Defence Ltd. from the Rafale deal. The government and Reliance Defence have dismissed all the allegations as false.
Talking to reporters here on sidelines of a party meeting, he said the United Progressive Alliance (UPA) government had decided to buy 126 Rafale aircraft and entered into an agreement.
In a series of tweets, the former finance minister also claimed that though export credit had declined from Rs 39,000 crore in June, 2017, to Rs 22,300 crore in June, 2018, the government thinks that it is taking steps to boost exports.
On August 31, the court in an interim order dispensed with the appearance of Chidambaram's wife Nalini, his son, Karti and daughter-in-law Srinidhi before the special court until September 14.
Special CBI Judge O P Saini agreed to hear the plea at 2 pm Monday after the probe agency told the court that custodial interrogation of Karti Chidambaram was required in the matter.
"Relentless rise in prices of petrol and diesel is not inevitable. Because, the price is built up by excessive taxes on petrol and diesel. If taxes are cut, prices will decline significantly," he said.
A division bench of Justice S Manikumar and Justice Subramonium Prasad reserved its order after recording the submission made by senior advocate Gopal Subramanium on behalf of the petitioners.
This is the fourth time the senior Congress leader is being questioned in the probe. He was last grilled for about six hours on August 24.
In a series of tweets, the former finance minister also said the RBI figure has suggested that the government had actually demonetised only Rs 13,000 crore and the "country paid a huge price" for it.
The Congress leader alleged that the CBI was not interested in a fair trial in the court of law and only wanted trial by the media.