Games Chief Executive Officer and Sports Authority of India Director General Injeti Srinivas told reporters that a solution could not be reached to end the impasse and it was decided to scrap the discipline.
"We tried to sort the issues out and suggested different options like going ahead with the event and give away medals without the results going into record books. But there was no response from some quarter. So we have decided not to go ahead with basketball. It will not be held now," he said at the media briefing.
He said the issue arose due to different stands taken by different quarters.
Left red-faced after FIBA de-recognised the sport from the 12th South Asian Games due to government interference, the organising committee was on a damage control mode, trying to find a feasible solution before the start of the event.
In a letter to the basketball federations of Afghanistan, Bangladesh, Maldives, Nepal, Sri Lanka and hosts India, the FIBA has advised the participating nations not to send their teams to the multi-sporting event to be held in Guwahati and Shillong from February 5 to 16.