Mr Hazare said he would launch another agitation on the occasion of Mahatma Gandhi's 148th birth anniversary from Rajghat, where Mr Hazare paid tribute to the Father of the Nation.
In a letter to PM Modi, Mr Hazare wrote that even after three years in power, the Prime Minister had not enforced the Lokpal and Lokayukta bills, but had instead "hastily" passed amendments to weaken the anti-corruption law.
He said while earlier it was mandatory for those covered under the Lokpal to disclose their assets as well as the assets of their family members, the amendment passed in July last year exempted the family members from doing so.
He also accused the Prime Minister of postponing enforcement of the anti-corruption law by making "one or the other excuse".
"It appears you have no intention to bring Lokpal and Lokayukta Act... And that you don't want to build a corruption-free India," Mr Hazare wrote.
"Looking at the present situation, it appears that no efforts are being made to end corruption and establish effective democracy in the country. Instead, efforts are being made to weaken democracy and strengthen the party.
"Distressed by this, I will pray for the country on the occasion of Mahatma Gandhi's birth anniversary and will launch a 'satyagraha' from his footsteps," he added.
The social activist said that PM Modi and the Bharatiya Janata Party (BJP) promised many things to the common man including an end to farmer suicides, fair price for agricultural produce, safety of women and solution to all problems of all sections of the society.
PM Modi also promised getting back the black money stashed abroad within 30 days of coming to power, Mr Hazare wrote.
"But neither the Lokpal and Lokayuktas were appointed, nor the citizen charter enforced. Neither the black money came back from abroad, nor the black money from within the country got exposed through demonetisation.
"Farmer suicides did not stop but have been increasing. They do not get fair price for their produce. There has been no action on the Swaminathan report.
"Women haven't got the security, respect and justice that they deserve. And when it comes to corruption, it has been increasing by the day," Mr Hazare added.