He was speaking at an investiture ceremony at Akhnoor, 40 km west of Jammu.
General Parnaik said there was a lot of anger among army units after the Pakistani troops killed two Indian soldiers Jan 8 in Jammu and Kashmir, beheading one of them and mutilating the body of another.
The raiders, who Indian officials say were from the Pakistan Army, took away the head of the soldier.
"But I pacified them (Indian soldiers)," he said.
Genearl Parnaik said that even after the brigadier-level flag meeting Monday at Chakan da Bagh in Poonch district, Pakistan fired at three Indian forward posts in Mendhar sector. The Indian Army retaliated.
He maintained that Indian troops did not cross the border in Uri sector Jan 6 -- the day Pakistan claimed that one of its soldiers was killed -- nor thereafter despite the high provocation.
"Pakistan was given all the evidence of (their) laying mines on the Indian side of the LoC, killing of Indian soldiers and mutilation of their bodies but they were in a denial mode," Gen. Parnaik said.
"This was Pakistan's way of telling lies", he said.
According to Gen. Parnaik, there were 43 terrorist launching pads in Pakistani Kashmir and 400-500 terrorists were prepared to infiltrate into Jammu and Kashmir.