The body of Mandeep Singh was mutilated after he was killed by terrorists in October last year.
Bitta said the ex gratia promised to Mandeep's family was given only in February and the cheque was given through the Red Cross.
Recently, Mandeep's widow, Prerna, a constable at Haryana police posted in Kurukshetra, was suddenly taken off VIP duty when Union Home Minister Rajnath Singh visited there, he said.
Mandeep's mother Nirmala Devi, wife Prerna and elder brother Sandeep were also present at the press conference.
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"Chief Minister Manohar Lal Khattar may be an honest man, Haryana may be corruption free, but the way the lower rungs in the state administration are insulting martyrs' families, I have never seen this before," Bitta said.
"The government announced Rs 50 lakh ex gratia. The family did not ask for it, but that too was given in February. But first, they were asked to complete several formalities," he said.
He, however, praised the Amarinder Singh-led Congress government in Punjab, saying the chief minister wasted no time in giving jobs to the armyman, hailing from Tarn Taran, who was beheaded by Pakistani forces recently.
"Prerna is constable in Haryana police. She is an MA. What stops the government from promoting her to the post of Inspector or DSP. We have not come before the media to seek something, but only to highlight the insult which the family has faced," Bitta said.
"Then, she was asked to report to a police station in Kurukshetra, where she was confined all day till the minster left. She broke down into tears, she was depressed not knowing where her fault lies," Bitta said.
Hitting out at the Haryana government, he said, "I think the CID in Haryana must be tapping the family's telephone lines... It seems they never gave any report to the Chief Minister about the insult the family has faced. Prerna also got threat letters from unkown persons twice."
"If the Haryana government insults this family again, we will start a nationwide campaign against them," Bitta said.
Mandeep's mother Nirmala Devi said, "We are poor, but not beggars, we have not been given due respect we deserved."
Prerna said, "I am getting threat letters, if anything happens to us, who will be responsible? My husband fought a dozen terrorists, why has his sacrifice been forgotten?"
"I have never broken any rule during my duties. I perform my duty with full responsibility. I did not break any rule on that day, but I was taken off duty as they thought that I may approach Rajnath Singh with some demands, but I had no intention as I know my duty... When I was taken off duty in that manner, it hurt me, I felt insulted," Prerna said.
"I am not asking for any job, money or promotion. Getting respect is important," she said.