The Union Cabinet, at a meeting chaired by Prime Minister Manmohan Singh, rejected the Urban Development Ministry's proposal to allot the plot to the party, founded by Netaji Subhas Chandra Bose.
Sources said the proposal was rejected as the government did not want to set a precedent by making an exception to AIFB as it may lead to similar demands from a large of number of small parties.
The AIFB has three MPs.
As per the rules, a party to have a space allotted for official use has to have at least 11 MPs.
