Sharan has taken charge as Joint Director General in the Directorate General of Civil Aviation (DGCA) yesterday, the post he was holding before he was suspended, they said.
"The case against him will continue and the enquiry was still on," they said, now the probe would be conducted against him by the chief vigilance officer of the civil aviation ministry.
The senior DGCA official was suspended in March this year by the government following a Central Vigilance Commission probe which said he had allegedly caused loss of about Rs 190 crore to the state exchequer by granting undue concessions to 28 flying schools in 2005, when he was Deputy DGCA.
He was alleged to have shown undue favour towards company opening a flying school in Raipur and his daughter was trained at the same flying school to obtain a commercial pilots licence.
Few days ago, Civil Aviation Minister Ajit Singh had said that government had recommended initiation of "major penalty proceedings" against Sharan.