The state Cabinet that met here today after a gap of three months, rejected the CBI's request, according to Information Minister D K Aruna.
Dharmana submitted his resignation from the minister's post on "moral grounds" on August 14, a day after he was charge sheeted by CBI in the Vanpic Port land scam.
Chief Minister N Kiran Kumar Reddy, however, did not take any decision on the minister's resignation and kept it pending for more than three months now.
Dharmana, who had not been attending official duties since August 14, stayed away from the Cabinet meet today.
He, however, sent a note to his colleagues in the Cabinet today pleading innocence in the Vanpic land allotment issue.
"I have not taken any decision on my own.
Everything was done in accordance with the (then) Cabinet decisions," he claimed.
Meanwhile, sources said Health Minister D L Ravindra Reddy objected to issued being raised in the Cabinet meet.
"Granting or rejecting permission (for prosecution) is an issue to be decided by the Chief Minister.
Why should it be placed in the Cabinet!" Ravindra Reddy questioned and said he was opposing the Cabinet resolution.
Panchayat Raj Minister K Jana Reddy said there was no need for a discussion on the issue in the Cabinet.
"As ministers, we will accept your decision," he told the Chief Minister.