The commission recommended legal action against Langah and prosecution of IO SHO Satpal under section 182 of the IPC, besides compensation for Sandeep Kumar, to be recovered from the "erring" officer, an official spokesperson said.
Kumar was booked under sections of the NDPS Act at Dera Baba Nanak in 2015.
It has further recommended that Sucha Singh Langah, former minister, be booked under section 120-B of IPC for conspiring with the IO to "falsely" implicate Kumar.
The commission, which has dismissed 81 complaints on various grounds, in this round of investigation, also suggested cancellation of an FIR against Lok Insaaf Party Leader and MLA Simarjit Singh Bains, after taking appropriate order from the court.
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Bains was booked for allegedly instigating people against the government in October 2015 in Ludhiana.
The third interim report of the commission, relating to 101 cases/complaints received by it across the state, has recommended cancellation of FIRs in a total of 12 cases, five of them after taking appropriate orders from the Court.
Punjab Chief Minister Chief Minister Captain Amarinder Singh had entrusted Justice (Retd) Mehtab Singh Gill and former District and Sessions Judge B S Mehndiratta the task of investigating the alleged false cases registered during the previous SAD-BJP government.
In its second interim report submitted last month, the Commission had found political vendetta behind 47 cases identified by it as false.
In that report, the Commission had recommended cancellation of FIRs in 37 of these cases, while in four cases it has suggested compensation to accused acquitted by courts. In the remaining six, it recommended other action, such as not to file challans in courts.