His suspension follows a report submitted to Chief Minister Parkash Singh Badal that said the IAS officer had caused a loss of Rs 20 crore to the Punjab Agro Foodgrains Corporation by his actions as managing director. The government is also considering taking action against the Deputy Managing Director, who is a PCS officer.

Saroj is accused of having gone out of his way to hire a Mumbai-based company without inviting tenders and extending advances without proper bank guarantees.

The company was to deal in importing and exporting iron ore and steel scrap for which it was advanced Rs 14 crore. However, due to sharp fall in international prices of iron and steel at that time, the company failed to repay, causing a loss of Rs 20 crore to the Corporation.

The inquiry report also held Saroj guilty of exceeding the charter of the concern that he was heading.

“Why was the Punjab Agro indulging in import and export of iron and steel, which have nothing to do with producing and selling foodgrains?” asked an officer.