The Kejriwal government stood its ground notwithstanding the assertion by Jung that 'Government' meant the LG in Delhi.
Capping a day of dramatic developments, Maliwal posted a tweet claiming that Jung had called her and conveyed that she should not come to office from tomorrow and that all her files are being taken back.
However, contrary to the claims made in the tweets, she later said it was "LG's secretariat and not Jung" which communicated to her office that she should not continue in the post. Jung's office vehemently denied her claims, saying LG was upset over such baseless allegations.
"The LG has called me and told me that I should not come to office from tomorrow and all my files are being taken back. The DCW office will be locked," she tweeted.
The 30-year-old women's activist said she will continue in her capacity as DCW chief till further government orders in this regard.
"I have a schedule for field visit tomorrow and I will stick to it. I will follow the government orders. I think the issue will be resolved," she told PTI.
Earlier, the AAP Government said Maliwal will not be asked to discontinue and that her appointment will stand.
Reflecting government's strong position on the issue, Transport Minister Gopal Rai said Chief Minister Arvind Kejriwal had made the appointment in tune with constitutional provisions and laid down norms and there was no question of reviewing the decision.
"Whatever LG said today is not new. Such instances (LG's intervention in government's works) have now been old," he said indicating government will reply to the LG on the issue.
In a letter to the chief minister's office, Jung had said the notification appointing her was "ultra vires and infructuous" as it does not have his approval.
Maliwal, who had taken charge of DCW, is the wife of Aam Aadmi Party leader Navin Jaihind and has been an advisor to Kejriwal on public grievances and handles his Janta Samwad. She has been associated with the AAP chief since India Against Corruption days.
Referring to a Home Ministry order, the LG's office insisted that 'Government' meant the "Lieutenant Governor of the National Capital Territory of Delhi" appointed by the President and insisted that he was sole authority in deciding on major issues including appointment to top positions.
"The constitutionally valid consistent definition of Government is the Lieutenant Governor of the National Capital Territory of Delhi appointed by the President under Article 239 and designated as such under article 239 AA of the Constitution," the LG's office said in the letter.
Sources in the government said the issue will be discussed on Thursday.
The LG has been locked in tussle with Kejriwal on a number of issues including on appointment and transfer of senior bureaucrats.
Kejriwal is understood to have discussed the issue with a number of his cabinet colleagues following which a decision was taken to continue with Maliwal.
"Chief Minister Arvind Kejriwal has taken decision to appoint Maliwal as per Constitution and law. If someone has problem, we will then discuss," Rai said.
A top official said, "We will give appropriate reply to the LG. Government will back Maliwal as DCW Chief."
On her part, Maliwal said she respects the "constitutionality" of LG's office and hoped the "minor" issue will be resolved.
"I think this is a minor technical glitch because what is being said is that the file (my appointment) was not sent to LG's office. I think it will get resolved. It is not a very major issue," she told reporters.
The LG's office has asked principal secretary (social welfare) to furnish the facts and circumstances in which the notification appointing Maliwal was issued "by Order and in the Name of the Lt Governor of the National Capital Territory of Delhi" without his approval.
"You (principal secretary, social welfare) are requested to clarify/confirm whether all applicable rules and procedures were followed while processing this matter. The facts may kindly be submitted to LG's office by July 28 for perusal of the Lt Governor," a letter by LG's office to the official said.
The LG's office said any action taken by the DCW under Maliwal's leadership will be "ultra vires" as her appointment has been made null and void.
"I have not received any communication from the LG's office or the Delhi government on the issue. I am doing my work. I will continue doing my work whether I remain in the post or not," Maliwal, who continued to work as DCW chief today, said.
Referring to reports claiming that Jaihind and Kejriwal were relatives, BJP's Delhi unit president Satish Upadhyay had questioned whether the Delhi CM was carrying forward the "Jai Hind jijaji (hail brother-in-law) tradition of Congress" by considering Maliwal for the job.