"INC need (sic) to solve money in politics. We can't afford to have contractors and their nexus with the state PWD minister determine how candidates are selected for the upcoming assembly elections," said a tweet from a twitter handle that is not verified.
As the tweet went viral on social media and created a buzz in political circles, Mr Moily, when contacted by PTI, said it was a "mistake committed by somebody else."
"That Twitter (handle) is not in my control. It's not an appropriate tweet. I'm withdrawing (it)," said Mr Moily, who heads the manifesto committee for the assembly polls.
Coming on the day when the AICC plenary was to begin at New Delhi, the tweet also tagged Rahul Gandhi's office, Congress headquarters, Karnataka Pradesh Congress and Mr Moily's son Harsha Moily.
Minutes later, the same tweet was posted on the twitter handle of Harsha too. This tweet tagged Chief Minister Siddaramaiah also.
Both the tweetes were later deleted.
The tweet was allegedly targeted at PWD minister H C Mahadevappa, a trusted aide of Siddaramaiah.
The tweet row has erupted amid reports that Mr Moily, a former chief minister, was unhappy over discouraging remarks allegedly made by Mahadevappa during a screening panel meeting about giving party ticket to Harsha to contest the assembly polls from Karkala.
Asked if his twitter account was hacked, Mr Moily said, "I don't say that but even then it's not proper."
Asked whether any action would be initiated against those who played "mischief" with his twitter handle, Mr Moily said he didn't want to make any further statements. "Forget the matter."
Reacting to the controversy, Mahadevappa said he didn't have any information about it.
"I don't know social media, hence I don't know about tweets. Someone told me about such a tweet, after that he (Moily) has said that he has not tweeted, this is what I know....rest you have to ask him," he added.
Seizing the opportunity, state BJP president B S Yeddyurappa said Mr Moily's tweet validates his party's stand that Siddaramaiah is "a 10 per cent CM".
The comment relates to a charge made by Prime Minister Narendra Modi at a rally in the state recently, where he had called the Siddaramaiah dispensation a "10 per cent commission government."
"At last someone's conscience in @INCKarnataka prodded him to speak up! @moilyv ji is right. We have been saying that @siddaramaiah is 10 percent CM," Mr Yeddyurappa said.
"With contractors filling PWD min's deep pockets, state's coffers & roads are in tatters. Congress veteran's view validates our point," Mr Yeddyurappa tweeted.