The Mumbai Mirror and Filmfare both belong to the Times Group. Aishwarya Rai, who was supposed to perform at the event, has decided to pull out.
The Bachchans have also sent a legal notice to the editor of Mumbai Mirror, seeking a retraction and apology.
"We have informed Filmfare that neither will Aishwarya be performing at the event, for which all preparations had been made and neither shall any of us be attending," Amitabh Bachchan posted on his blog, bigb.bigadda.com.
The family is angry that the paper has not published a formal apology for the article stating that Aishwarya is suffering from stomach tuberculosis and cannot conceive, a news branded as "completely false" by father-in-law Amitabh.
"Suffice to say for the moment that despite a few personal apologies from management and owners, no public apology has taken place. You cannot abuse me in public and then come and say sorry to me in private.
"So, even though we have great relations with the family in ownership and despite the fact that we have continuously responded to their needs whenever desired, unstintingly - the lawyers notice has been delivered to the editor of Mumbai Mirror, seeking on a legal plane retraction and apology," he added.
The Bachchans are not alone in their stand. Director R. Balakrishnan, who helmed the Amitabh and Abishek-starrer "Paa", has also decided to stay away from the event to show his support to the Big B.
"Balki, the director of the film, even when 'Paa' has been nominated in five categories for the evening, (is not attending). No coercion, just a voluntary decision of solidarity. Thank you Balki," said Amitabh.
The Filmfare awards will be held in Mumbai Saturday evening.