Here are the latest developments in this story:
Kiran Bedi, 65, is a former IPS officer and activist, who joined the BJP, and politics, only last week. She will contest from the Krishna Nagar constituency, traditionally a BJP stronghold, so that she can focus on campaigning for the party, Mr Shah said.
"The BJP will fight the Delhi elections under Kiran Bedi's leadership," Mr Shah said, adding, "We are confident that under her leadership we will get a majority."
Ms Bedi said after the announcement, "Mai kahungi, 'bahut bahut dhanyavaad' (I will say many thanks). I am very grateful to the BJP leaders."
Tonight's decision pits Ms Bedi directly against her former associate Arvind Kejriwal who is the chief ministerial candidate of his Aam Aadmi Party. Ms Bedi and Mr Kejriwal had worked together with Gandhian activist Anna Hazare's team during his campaign for a Lokpal or national ombudsman against graft, but later fell out.
AAP leader Somnath Bharti said after the announcement, "Kiran Bedi ji has unnecessarily been made the scapegoat. If they lose, they don't want to put the blame on Modi ji."
Kiran Walia, senior Congress leader said, "She would be a good disciplinarian for BJP if at all she becomes the chief minister".
Amit Shah denied reports of a rift or dissent in the party over Ms Bedi being para-dropped into the Delhi unit. "The decision to make Kiran Bedi the party's chief ministerial candidate for Delhi was supported by all members," he added.
There has reportedly been some heartburn in the BJP's Delhi's unit over Ms Bedi, but dissent has for most part not been overt among senior leaders seen as CM probables. Party MP from Delhi Manoj Tiwari was forced too clarify his comments on Ms Bedi after the BJP leadership made its displeasure known.
After a meeting of its Central Election Committee, the BJP released its list of candidates for the upcoming Delhi Assembly elections. The party's Delhi unit chief Satish Upadhyay did not figure on the list.
In the December 2013 elections, the BJP had bagged 31 seats and its ally the Akali Dal had won one. They were five seats short of a majority in the 70-member assembly, with AAP winning 28 seats, and the Congress eight.
At Key Party Meet, West Bengal BJP Leaders Seek Demand Accountability Amid Electoral Setback PM Modi Likely To Meet BJP Workers At Party Headquarters Tomorrow AAP vs BJP Again Over Demolition Activities In Delhi Amid Huge Row, Karnataka Pauses Bill For Reservation In Private Sector Firms Travel Influencer Aanvi Kamdar Dies After Falling Off A Waterfall Near Mumbai BJP Subtly Asking Ajit Pawar To Quit "Mahayuti": Sharad Pawar's NCP At UN, India Calls For Immediate Ceasefire In Gaza, Release Of Hostages West Bengal BJP Leaders Seek Demand Accountability Amid Electoral Setback All About Travel Influencer Aanvi Kamdar Who Died After Falling Off A Waterfall Track Latest News Live on NDTV.com and get news updates from India and around the world.