"In a communication to the Ministry of Home Affairs, the LG has stated that the Commission of Inquiry Act, 1952 empowers only the Centre and state governments to appoint a commission of inquiry. Since, Delhi is a Union Territory, a commission of inquiry may be ordered only with the concurrence of the Centre, through the LG," sources said.
"Also, the funding for the DDCA comes not only from Delhi but also other states and hence it is not just Delhi Government's jurisdiction to conduct a probe," they added.
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The LG is also believed to have cited that the inquiry into the CNG fitness kit scam set up by the Kejriwal government earlier was set aside by the Centre on the same ground.
Delhi Chief Minister Arvind Kejriwal, however, has claimed that the action amounts to "unjustified interference" as the inquiry is "perfectly" legal and Union Minister Arun Jaitley should cooperate with the inquiry commission and stop "misusing" the LG office.
"We are not scared when all the agencies under them including police CBI, DRI are after us, why are they scared with one commission of enquiry," he added.
Kejriwal also maintained that the Transaction Business Rules (TBR) clarify that this file is not needed to be sent to LG for clearance, tersely adding "he is not a dictator".
"According to the Constitution, LG has three subjects under him- police, public order and land. According to the TBR, no other file should go to LG for clearance, he is not a dictator," Kejriwal said.
"The rule says that the commission of enquiry can be instituted by the Cabinet and Legislative Assembly, they are empowered to do so. Raising objections to this is politics to save those who are corrupt," he said on sidelines of an event.
"Jaitley should cooperate with the commission of enquiry and stop misusing the LG house. I also hope that Rajnath Singh will not try to shield him by obstructing the probe," he said.