For installing any art structure in the Lutyen's zone, approval from DUAC is mandatory, sources said.
They added that the Make in India mascot was removed from Udyog Bhavan due to lack of required permissions from authorities.
It was put up last year, but it could not be unveiled officially.
The lion, with its rotating gears and wheels, has been manufactured and installed by state-run power equipment maker Bharat Heavy Electricals (BHEL) at the behest of the Department of Heavy Industries.