This is the fourth time that China has used the technical hold to block the proposal, which is being pushed by other permanent members of the UNSC, particularly the US, Britain and France.
India expressed disappointment over the development but vowed to continue to pursue "all available avenues to ensure that terrorist leaders who are involved in heinous attacks on our citizens" are brought to justice.
"The ISIL (Da'esh) and Al-Qaida Sanctions Committee (1267 Sanctions Committee), upon completion of the no-objection period on 13 March 2019, was not able to come to a decision on the proposal for listing Mohammed Masood Azhar Alvi under the UN Sanctions regime, on account of a member placing the proposal on hold," said a statement issued by the External Affairs Ministry.
The statement did not identify the "member" of the UNSC which put the proposal on hold but sources said it was China.
According to sources, more than 10 countries supported as co-sponsors India's bid to designate Azhar as a global terrorist in the United Nations Security Council 1267 list.
"Big, Small & Many... 1 big state holds up, again ... 1 small signal @UN against terror. Grateful to the many states - big & small - who in unprecedented numbers, joined as co-sponsors of the effort.