However, the LG's office refuted the claim and said the Lt Governor has just "sought clarification" from the government on its proposal.
The Arvind Kejriwal government had in February sent to Jung for his approval a proposal regarding the slapping of fine Rs 2000 on those obstructing the plying of buses on such dedicated lanes.
"Delhi government informs the residents of the national capital with regret that the Lieutenant Governor of Delhi has declined to approve the proposal for dedicated bus lanes on Delhi roads and imposition of a fine of Rs 2,000 to the violators of this rule," the government said in a statement.
"Before sending a file relating to the proposal to the LG office, the Transport Commissioner had suggested the government seek PWD opinion on the proposal as it is a road-owing agency. Without taking PWD's view, government sent it to the LG's office for approval.
"The LG has now sent back the file and asked the government for PWD's view on it," a source said, adding that it is a routine practice whenever LG has doubts on any proposal.
The city government said that following the demand of Delhi Traffic Police and consistent orders of the Supreme Court over the years, the Delhi government had prepared this proposal and sent it to the LG for approval.
The Lt Governor and the AAP government have been at loggerheads on a range of issues including transfer and postings of bureaucrats and formation of Commission of Inquiry.
"We have decided to impose a fine of Rs 2,000 on those who park their cars on dedicated bus lanes or encroach upon it or cause obstructions to the plying of buses," Deputy Chief Minister Manish Sisodia had earlier said.
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