Speaking in the Lok Sabha, the former defence minister alleged that the Chinese incursion was aimed at annexing Indian territory.
"I have been raising this issue for the past eight years. I had warned that that there will be a repeat of 1962. I even went and met the prime minister, yet there was no response. Now (External Affairs Minister) Salman Khurshid is going to China. What for? Beg before them?" an angry Mulayam Singh asked.
Khurshid is scheduled to visit Beijing early next month.
Mulayam Singh claimed that one lakh square km of Indian territory has been "occupied" by China, and accused the government of "doing nothing".
"When the Army chief himself says the troops are ready to respond, why is the government not issuing instructions to it? They (China) insulted us in 1962. They are insulting us now in the world fora," he said.
Besides Mulayam Singh, several members voiced concern on the stand-off that continues with China at the border.
"I would request and I would urge upon the government that adequate steps be taken to drive out the Chinese forces from the Indian territory and all attempts should be made to demarcate the Line of Actual Control," demanded Biju Janata Dal's Bhartruhari Mahtab.
Trinamool Congress MP Sudip Bandyopadhyay urged the speaker to allot time for a full debate on the issue.
"The PM should come and make a statement in the house," he said.
On April 15, a Chinese platoon set up camp 19 km inside Indian territory in Depsang Valley in Ladakh.
India has tried through meetings with local military commanders and through diplomatic channels to get China to vacate the spot. China insists that it has not intruded into Indian territory.
Prime Minister Manmohan Singh has said that India does not want to "accentuate the situation" and that it is a "localized problem".
"We do have a plan. We do not want to accentuate the situation. We do believe that it is possible to resolve this problem," he said Saturday.