"A sand mining contract in Malikpur in Nawanshahr district was allotted to one Kudratdeep Singh of Ludhiana, who is the business partner and close associate of Channi's nephew Bhupinder Singh, alias Honey," Khaira said here.
The AAP leader accused Channi of acquiring mining contracts through his nephew Honey.
He further alleged that "black money" was being used for this purpose.
Khaira demanded that an inquiry be initiated in the case by a commission under a sitting or a retired high court judge.
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Meanwhile, Channi, in a statement here, reiterated that neither he nor any of his family members' have any stake in the mining business.
Reacting to the allegations levelled by Khaira, Technical Education Minister Channi said Khaira was making "baseless and false" allegations against him.
Channi dared Khaira to prove his allegations or face legal action.