The Lt Governor's direction came after the Ministry of Home Affairs declared "illegal" the Arvind Kejriwal government's notification.
In a communication to the government, Jung has directed it to immediately withdraw its notification on the appointment of panel of advocates-on-record and arguing counsel as the city administration did not follow laid-down procedures.
The LG office asked the government to comply with the MHA orders in this regard.
The order had stated that advocate-on-record shall be paid a fixed remuneration of Rs 90,000 per month.
It had further said advocates-on-record may also be paid drafting fee of Rs 7,500 for each case.