A diplomat at the United Nations told PTI that China put a "technical hold".
On being asked at a press conference, Chinese Foreign Ministry spokesperson, Lu Kang said that China has engaged in mediation efforts on both sides and helped talks to promote easing of tensions.
The resolution on Masood Azhar was moved by three permanent members of Security Council - the US, France and the United Kingdom - after the February 14 terror strike in Jammu and Kashmir's Pulwama in which 40 soldiers died. The no-objection period deadline was scheduled to end at 3.00 pm local time (New York) Wednesday, (12.30 am IST Thursday). China gave no reason for the hold, which places the request in limbo.
India on Saturday said all UNSC members were aware about the JeM training camps and the presence of terror group's chief Masood Azhar in Pakistan, and urged them to designate him as a global terrorist.
It further stated how China's non-cooperation has prevented any action by the global community to enlist the leader of JeM, a proscribed and active terrorist organisation which has claimed responsibility for the terrorist attack in Jammu and Kashmir on February 14.
"The US and China share a mutual interest in achieving regional stability and peace, and ... a failure to designate Azhar would run counter to this goal", Palladino added.
"I urge Beijing to allow the United Nations to place sanctions on Azhar, the leader of a UN-recognized terrorist organization", Sherman said.
"I want to say that China always adopts a responsible attitude, engage in consultations with various parties and properly deal with this issue", Lu said.
India has expressed disappointment in the outcome and said it will continue to pursue "all possible avenues to ensure terrorist leaders are brought to justice". China has time and again blocked the ban on Azhar.
China, which is one of the five veto-powered members of the Security Council, so far has been asserting that there is not enough evidence against Azhar to designate him as a global terrorist.
When was the proposal moved?
India has been reaching out to world leaders to blacklist Azhar ever since the JeM claimed responsibility for the deadly Pulwama terror attack, which left 40 CRPF personnel dead last month.
On Monday, India and the U.S. called on Pakistan to take "concerted action" to dismantle terror infrastructure and deny safe haven to all terror groups, reflecting the growing pressure on Islamabad to crack down on terror after the Pulwama suicide bombing. Also, India's growing proximity to the USA, sheltering Dalai Lama, and Pakistan's role in China's One Belt One Road strategy are said to be the reasons for China's protecting Pakistan's interests.