Delhi Police has denied all allegations of threats and bribery.
In a statement posted on X, the police said no misconduct or wrongful intent had been found on the part of its personnel.
The force also invited Sapra to file a detailed complaint with evidence so that its Vigilance Department could investigate.
This means an internal inquiry could still take place if formal evidence is submitted.
Why police say action was taken
Delhi Police gave a very different version of events.
According to the police, Masoodpur Dairy has recently seen multiple thefts, including motorcycle thefts.
Police said local enquiries and beat staff inputs showed that several cloud kitchens in Dairy No. 31 and Dairy No. 7 were causing heavy congestion.
They said large numbers of delivery vehicles were parked in the area, leading to traffic problems.
Residents had also reportedly complained about late-night activity and constant movement.
Licence issue raised by police
Police said that during night patrolling at around 2 am on April 27, officers noticed overcrowding near the kitchens.
They said operators were asked to produce licences required for late-night operations.
According to Delhi Police, the operators failed to provide valid documents.
As a result, police said preventive action was taken to close the establishments temporarily.
They maintained that the action was aimed at maintaining law and order and preventing crime.