The Beijing Public Security Bureau denied on Thursday a report saying that the discipline inspection department investigated the head of the municipal traffic administration.
On Thursday morning, Economy and Nation Weekly reported that Song Jianguo, director-general of the capital's Traffic Management Bureau, was suspected of irregularities.
The report said Song used his post to bend laws for personal gain, and was involved in a fraudulent scheme related to the city's lottery that awards car plates.
The report caught the netizens' attention and was forwarded more than 11,000 times after it was published at about 10 am.
At noon, Beijing police said that the report was false.
According to the report, other workers in the traffic management administration were also investigated in relation to the car plate lottery.
Since December 2010, Beijing residents have to enter a car plate lottery if they want to buy a private car. The administration distributes 20,000 car plates each month.
The policy is aimed at curbing the rapid increase in the number of private cars and the problems caused by traffic jams.
As of November, the number of applicants was more than 1.2 million and the ratio of getting a car plate has hit a record low, the report said.