The notice, dated January 12, was served on Sharma on January 17.
Recently, on January 22 Ahmedabad bench of Central Administrative Tribunal (CAT) has quashed a departmental charge sheet given to him on the charges of not returning a CD of call records of 2002 post-Godhra riots.
Sharma, who had taken voluntary retirement a year ago, has become a practicing lawyer now.
In this fresh notice, the state Home Department has alleged that Sharma, a 1992 batch IPS officer, committed "intentional irregularities" when he was posted as Deputy Inspector General of Police (DIG) of Armed Units in Rajkot during 2012.
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On two different occasions, Sharma asked his driver and gunmen to stay back at Gandhinagar for a day, which caused a loss of around Rs 3,000 to government, the notice says.
"Sharma broke the rules by taking leave without prior approval and made illegal use of government vehicle and human resources," the notice alleges.
In the notice, the state government also asked Sharma to explain the delay of three months in the payment for using government vehicle for personal trips in February 2012.
According to Sharma, he will take a call on the notice soon. "I have received the notice on January 17. I am asked to furnish my reply in ten days. I will take necessary action in due course," Sharma said.