Paramraj Singh Umranangal, DIG (Border Range), was put under suspension "for not performing his duties efficiently", an official release said.
"He has created indiscipline in the Border Range," the release said adding "his headquarters during the period of suspension would be in the office of DGP, Punjab".
No further details were officially provided in connection with the suspension of the DIG.
ASI Ravinderpal Singh was shot dead allegedly by SAD local secretary (Urban) Ranjit Singh Rana and three of his associates on December 5.
A local station house officer (SHO) has already been dismissed in connection with Ravinderpal's killing.