The committee had earlier endorsed the Lahore city district government's proposal to name the roundabout after Bhagat Singh as the freedom fighter had been hanged at the spot in 1931.
However, Dilkash Lahore committee vice-chairman Ejaz Anwar on Friday said the press release, issued on Wednesday, could have been released by "some members" of the committee and did not reflect the views of the entire panel.
"Some members of the committee seem to have succumbed to the pressure of the Jamaat-ud-Dawah and are suggesting the withdrawal of the proposal to name Shadman Chowk after Bhagat Singh," Anwar told PTI.
"The committee, in principle, has decided not to (give in to) pressure from any group and we and the government will fight the case in court," he said.
The move to rename the roundabout after Bhagat Singh ran into trouble due to opposition from local traders and the Tehrik-e-Hurmat-e-Rasool, a movement launched by the JuD.
The Tehrik filed a petition in the Lahore High Court,which stayed the move to rename the roundabout till December 19.
The Dilkash Lahore committee was tasked by the Punjab government to give suggestions for naming roads and roundabouts in Lahore after historic personalities.