The hoarding were put up by Chandigarh Municipal Corporation at some places in the city informing the public about the commemoration event which was held today to mark the martyrdom day of Bhagat Singh, Rajguru and Sukhdev.
Along with the images of the three martyrs, the hoardings displayed photographs of armed army personnel with the US flag on their uniforms.
Confronted by reporters at the commemoration event where war widows were also honoured, Sharma initially tried to evade queries on the issue.
"I got phone calls this morning only. I am trying to verify the facts," she said.
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To another related question, she later said, "I will order inquiry into the whole thing."
The Mayor said she had no knowledge how the hoardings had suddenly been removed early today.
"I don't have knowledge about this," she said.
Senior BJP leader and former MP Satya Pal Jain said that such "casual approach" on part of authorities cannot be tolerated.
He demanded that strict action should be taken against those responsible for the lapse.
"We cannot forgive anyone for such lackadaisical approach. This is an insult to our martyrs and to all those who laid down their lives for the country's freedom," he added.