"Nothing is going to fall in the hands. We are against such activities and against people who seek to propagate such message," Mr Pawar said.
"The government agencies should not participate in such work," the NCP chief said, apparently referring to the Archaeological Survey of India's (ASI's) role in the digging in Unnao district in Uttar Pradesh.
The excavation work was being carried out amid tight security at the fort of former King Raja Rao Ram Bux Singh in Daudiakala village.
The gold rush was triggered after a seer Shoban Sarkar claimed that the king had appeared to him in a dream and told him that 1,000 tonne of gold lay buried in its ruins.
"Nothing will fall in the hands but the message will go out among the people that government is evincing interest.
This will lead to rise in "buwabaji" (promoting superstitions by godmen) in society," Mr Pawar said.