At the Cabinet meeting chaired by PM Manmohan Singh, the National Sports Development Bill, steered by sports minister Ajay Maken, was discussed and a number of ministers raised objections, the sources said.
Then, it was decided that the bill should be re-worked by the sports ministry before it could be again considered.
The opposition to the bill came mostly on concerns like preserving the autonomy of sports bodies and the age restriction on sports administrators.
The Indian Olympic Association (IOA) and several other National Sports Federations had fervently opposed the bill ever since the drafting stage, saying it was an attempt to hinder in the functioning of the bodies.
Under the Sports Bill, all sport federations would have been enclosed by the Right to Information (RTI) Act and all the sport federations require submitting the audited reports to Parliament.