Fr Bob told those gathered that the Mass was not a protest meeting and that anybody who attacks Archbishop Denis Hart attacks him, the Herald Sun cited from an AAP report.
The Sunday Age quoted Archbishop Hart saying Fr Bob, who has been the parish priest for South Melbourne since 1973, has poorly managed the finances of the parish, and only managed to keep it afloat by selling off assets worth millions of dollars.
The archdiocese said more than seven properties have been sold between 1980 and 2004 for more than $3 million to help Fr Bob's parish cover its operating expenses.
Archbishop Hart said he could no longer keep silent about the financial problems at the South Melbourne parish, the Herald Sun report said.
"I am very sorry I have got to do this, but there has been so much adverse publicity for the Catholic Church," he was quoted saying.
Archbishop Hart told The Sunday Age: "Outgoings have been considerable so that basic bills can't be met and we (the archdiocese) have had to help with that."
But according to Fr Bob, he was only able to sell property over the years with the full knowledge of the archbishop, the AAP report said.
"What we have done we have done with his signature - if I am guilty, then he is guilty," the Father Bob told reporters after Mass.
"This joint has more assets than it needs. What we need now is cash."
Port Phillip mayor Frank O'Connor said the parish had the support of leading politicians and business leaders who were trying to convince Archbishop Hart to let Father Bob continue his work, the AAP report adds.
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