He threatened to go on an indefinite fast.
"The cabinet has taken the decision of forming Jan Lokpal and Lokayukta in every state. If it has to be created by the states, then why did the prime minister write to us that the central government was ready to establish Lokayukta in states? He did not keep his word," Hazare told a press conference here.
The Union cabinet on Thursday delinked the Lokpal from Lokayuktas - or anti-graft ombudsmen - in states as it gave its nod to the Lokpal bill amendments.
The Bharatiya Janata Party and social activists, including Hazare, have slammed the proposed law saying it was not enough to curb corruption.
"We wanted Class 1, 2, 3 and 4 officers to be under its purview. The government agreed to it but now it says these officers will not be under Jan Lokpal. What is the meaning of the Jan Lokpal bill?" Hazare said.
He also criticised the government for not including the Central Bureau of Investigation in its purview.
"I will keep travelling across the country for a year-and-a-half for Jan Lokpal. (Retired army chief) Gen V.K. Singh will travel with me," he said.