"Any biopic that subserves purpose of any political entity or individual should not be displayed in electronic media," the Election Commission said in a statement.
The Congress last month had moved the Election Commission to stall the release of the biopic on the grounds that it is a politically-motivated film aimed at getting extra mileage for the BJP in the Lok Sabha polls.
The setback to the producers of the film comes a day after the movie was granted a 'unrestricted' (U) certificate for release by the Central Board of Film Certification (CBFC). Expressing happiness after getting clearance from the CBFC, director Omung Kumar had said: "The team and I were convinced of what we have made. It's a piece of cinema and not propaganda and now the Censor Board has validated what we have been saying all along.
"Very thankful and excited for the April 11. I hope the audiences enjoy this film, which for me, has been my toughest film till date."
The film, which narrates the story of Modi from his humble beginnings to becoming the Prime Minister of India, will now release post polls.
Trade analyst Taran Adarsh tweeted that the film, which features actor Vivek Anand Oberoi, has a run time of 130 minutes, 53 seconds.
The CBFC certificate for "PM Narendra Modi" came on the same day as the Supreme Court's dismissal of a plea seeking a stay on the film's release.
The court in its observation had said the Election Commission is the appropriate authority to address the petitioner's concerns on whether the film should be released in view of the upcoming Lok Sabha elections as it may tilt the balance or benefit a particular political party.
Facing strong opposition to the movie, Vivek Obeori had questioned why Lalu Prasad Yadav's autobiography wasn't banned. He also tweeted to Congress President Rahul Gandhi moments before putting out the video.
“Dear Rahul Gandhiji, on Monday morning in the Honourable Supreme Court, will you also try to stop your alliance partner Lalu Prasadji’s autobiography? Or is it just our film you’re after?,” he asked.
The film also features Boman Irani, Manoj Joshi, Zarina Wahab and Prashant Narayanan.
(With agency inputs)