Surrey, which signed former Pakistan captain Younus Khan on a deal that will last until mid-July, said in a statement that Chawla failed to get the BCCI's nod and hence would not join the side.
"Surrey can reveal that Indian leg spinner Piyush Chawla has been refused permission to play county cricket by the BCCI and will therefore not be joining up with the squad this season," the county said.
"The club can also confirm that the recent talks it has been holding with West Indian batsman Brian Lara have not come to fruition and he will also not be joining Surrey," it said.
Hailing Younus's appointment, Surrey said the arrival of Pakistan's 2009 Twenty20 [ Images ] World Cup-winning captain would bolster the side.
"I am confident that bringing a world class player such as Younus Khan to Surrey will have a very positive effect on the side," Surrey Professional Cricket Manager Chris Adams said.
"As well as benefiting from the weight of runs we hope he will bring, we have a number of young batsman who will doubtless benefit greatly from being able to train and play alongside him.
"In terms of the FPt20, the experience and skills that saw him lead Pakistan to the ICC [ Images ] World Twenty20 title in 2009 are sure to greatly help us in our pursuit of the trophy," said Adams.