The SFJ has threatened to shut down Dosanjh's concert in Australia on November 1.
"By touching the feet of Amitabh Bachchan, the man whose words fuelled the 1984 genocide, Diljit Dosanjh has insulted every victim, every widow, and every orphan of the 1984 Sikh genocide," Pannun said in a statement as quoted by India Today.
"This is not ignorance, it is betrayal. The Sikhs who were burned alive, the women raped, the children butchered, their ashes are not yet cold. No Sikh with a conscience can perform or celebrate on November 1, the Day of Remembrance," it added.
On the show, Diljit touched Bachchan's feet while the veteran actor called him "Punjab de puttar (the son of Punjab)" and hugged.
Diljit's Aura Tour in Australia started on October 26 and continued till November 9.
He is the first Indian artist to headline stadiums in Australia, specifically the stadium shows in Sydney and Melbourne with this tour.
Diljit has built up a strong global presence; this tour follows his successes in North America, Europe and elsewhere.