Prime Minister Prayut Chan-o-cha has denied any knowledge of a "spare party" having been registered for the ruling Palang Pracharath Party (PPRP) in case of a snap election.
He said he had no idea about a party named Ruam Thai Sang Chart having been set up as the PPRP's alternative.
Concerns have mounted that if the referendum draft bill, now being deliberated in parliament, fails to be passed in the third and final reading, the government, which sponsored the bill, would then have to accept responsibility.
In that case, the cabinet might have to resign and the House be dissolved, forcing a fresh election. It was speculated that under such a scenario, the PPRP might need another party allied to it to contest the election, which would help increase its prospects of winning many MP seats.
The reason the bill, currently in second-reading scrutiny stage, may not see the light of day is because the changes made so far to the legislation are feared to be unconstitutional.
The changes made to the referendum bill, which were put forth by the opposition, authorise parliament and general public to initiate a sign-up campaign calling for a referendum to be held. Some senators insisted the authority went beyond the limits of the constitutional framework.
Chusak Sirinil, a scrutiny committee member in the main opposition Pheu Thai Party's quota, defended the authority as constitutional. He explained the cabinet would decide whether to approve the call for a referendum to be organised and so the authority will be kept in check by the cabinet.
Meanwhile, Senator Wanchai Sornsiri said the government cannot be held responsible if the draft referendum bill is defeated in the third and final reading on the basis of it being unconstitutional.
The bill debated by lawmakers is designed to provide the legal groundwork for organising referendums. The Constitutional Court has determined that a referendum must be held to let people decide if they want a whole new charter. If so, another referendum will be arranged to gauge whether people agree with the contents of the draft charter after the writing of it has been completed.
Mr Wanchai explained that even though the government initiated the referendum bill, it no longer has any claim to it now that the draft has been admitted for debate and scrutiny by parliament.
The moment parliament made changes to the draft, the government bears no legal responsibility for it, he said.