Mr Sisodia, who also holds the finance portfolio, said no administrative department will process payment to any lawyer whose empanelment or appointment is not approved by the law minister.
The finance department issued an office memorandum to all principal secretaries and head of departments after the deputy chief minister "desired" to issue the directions.
"All payments of any lawyer(s) of any administrative department shall be made after the approval of the finance minister," the memorandum stated.
It stated, "No administrative department shall process the payment of any lawyer(s) whose empanelment or appointment is not approved by the Minister of Law."
In his letter to Mr Baijal, Mr Sisodia alleged that officials had refused to show the file on the recruitment process to him, citing the LGs orders.
Mr Sisodia also holds the services portfolio.