"We have referred the matter to the state government. We are waiting for their decision," Superintendent of Police (ACB) Vimal Kumar Gupta told PTI.
Gupta said it is for the state government to take a decision in the matter.
Garg had denied the allegations against him.
"Normally all such cases, whenever there is a complaint against a gazetted officer..It is referred to the state government," Gupta said.
"The state Chief Secretary, who is also Chief Vigilance Officer, will take call on it," the SP said.
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Halwai had also produced audio recording along with the complaint.
Chief Minister Laxmikant Parsekar while terming the allegations against IGP as "serious" had said an inquiry by a non-police officer would be conducted into the matter.
The matter was also raised during the recently held Goa Legislative Assembly session wherein legislators had demanded a probe into the complaint.