A problem was noticed when the cryogenic fuel was being loaded.
Consequently, the fuel was emptied out as the scientists did not want to take a chance with the highly inflammable liquid hydrogen and liquid oxygen.
The Chandrayaan-2 costing around 978 crores was designed to explore the uncharted lunar solar pole.
The mission followed ISRO's first successful lunar mission Chandrayaan-1, launched in 2008.
A full dress rehearsal was conducted last week and the scientists had undertaken various stages of propellant filling to power the rocket ahead of the launch.
The Chandrayaan-2 onboard the geosynchronous launch vehicle GSLV-MkIII-M1, nicknamed Baahubali, would have taken 54 days to accomplish the task of landing on the moon through meticulously planned orbital phases.
The mission had three indigenous elements lunar orbiter, lander, and rover.
After landing on the orbit, the lander -- named Vikram after the pioneer of the Indian space program Vikram Sarabhai -- was to separate from the orbiter and gently land on the moon's surface around September 6.
To date, only three countries US, the former Soviet Union and China have made a soft landing on the moon's surface.
The new date for the launch of the mission has not been announced yet. ISRO will release a revised date for the launch of the country's giant leap into space.
The Indian Space agency has launched multiple missions into space in the past 10 years. The missions have provided a better understanding of Mars and the Moon to the Indian Space Research Organisation.
The country aims to turn itself into a global space power and put Indian astronauts into space by 2022.
The Indian space agency has a budget that's 20 times less than NASA, its US counterpart.
A report by Sputnik International states ----the approximate $124-million price tag of the Chandrayaan-2 is less than half the budget of Hollywood blockbuster avengers endgame at $356 million.
The country's giant leap into space which was scheduled to shoot off from Sriharikota’s Satish Dhawan space centre in Andhra Pradesh was aborted just 56 minutes, 24 seconds before its launch