“It is a question of the dignity of Prime Minister's office. It is the question of the future of our jawans and the Air Force,” he said added.
Gandhi's attack on Modi came a day after Hollande was quoted as saying that the Indian government proposed Anil Ambani's Reliance Defence as the partner for Dassault Aviation in the Rs 58,000 crore Rafale jet fighter deal.
He alleged that various defence ministers of the NDA government have been lying to protect Modi.
Gandhi demanded a joint parliamentary committee probe and Hollande can also be called.
"We are absolutely convinced that the prime minister is corrupt... He must clarify," Gandhi said.
"It is very important for the prime minister now to either accept Mr. Hollande's statement or state that Mr. Hollande is lying and tell what the truth is," he said.
Earlier, Gandhi said there was a feeling among people that one ideology was being imposed upon them and asserted that the country cannot be run on one single idea.
The strength of the country, he said, is that people are allowed to discuss ideas.
Attacking the government over its education policy, Gandhi said government institutions should be given precedence over private institutions and the government should put money to strengthen them.
"Government institutions should be the guiding light and not private institutions. The government should put money in the system to strengthen government institutions," he said addressing eminent academicians at an event at Siri Fort auditorium here.
He said there is feeling that ideology is being imposed.
"You feel an ideology is being imposed upon you. This sense and this feeling is not only in your heart but it is in everybody's hearts from farmers to labourers. The country cannot be run from one single idea," he said.
"The fact that we allow people to talk to discuss. This is the strength of our country it is not the weakness of our country. If we see 3000 years of India's history, we are going to win. We are not going to lose," he said.
(With additional information from PTI)