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CSK chased down a target of 142 with 10 balls to spare on a tricky surface.
The appeal was refereed to third umpire Anil Chaudhary who ruled that that Jadeja was watching the ball and deliberately changed direction.
Despite this uncertainty, third umpire Michael Gough ultimately trusted the first two replays and declared Sanju out.
A couple of TV replays suggested that the foot hadn't moved but another angle looked unclear. The RR camp was unhappy that third umpire Michel Gough made the decision rather hastily.
The win boosted DC's playoffs hopes as they moved to fifth spot with 12 points from as many games. RR stay in second place with 16 points from 11 matches.
Sanju Samson scored 86 but the Royals fell short by 20 runs.
Bhuvneshwar Kumar kept his cool at the death as home side secured a thrilling victory.
The Hyderabad side won by 1 run with Bhuvneshwar Kumar bagging three wickets.
RR are sitting pretty at the top of the table with 16 points from nine games, while LSG remain in fourth place with 10 points from nine outings.
The two added 121 for the unbroken fourth wicket ass RR chased down the target of 197 in 19 overs.