"Edhi has thanked Modi and politely declined to accept his announced financial help," the Dawn quoted Edhi Foundation spokesman Anwar Kazmi as saying.
Bilquis Edhi, the co-founder of the humanitarian foundation, turned down the offer with thanks stating that the foundation rules do not allow any donations from government funds.
Addressing a press conference in Karachi, Sattar Edhi's son Faisal Edhi thanked the Indian prime minister and clarified that taking funds from governments was against the foundation's policy, adding that he would be very pleased if the Indian prime minister spent the money for the welfare of deaf and mute citizens in India, The News International reported.
Modi on Monday announced the contribution to the charity after the return of hearing and speech impaired girl Geeta to India.
"What the Edhi family has done is too priceless to be measured but I am happy to announce a contribution of Rs.1 crore for their foundation," Modi had tweeted on Monday.
Found on a train that had crossed the border from India into the eastern Pakistani city of Lahore, Geeta remained in Pakistan under the care of the Edhi Foundation in Karachi for over a decade.