Deputy Inspector General of Police K K Vyas yesterday issued suspension order for sub-inspector Devyani Naik, who was attached to Calangute police station.
The woman PSI was allegedly demanding Rs two lakh from a person arrested for possessing narcotics, the police said.
"The phone records indicated that she often called the person and tried to strike a deal of Rs two lakh to weaken the case," a senior official said.
During 2010, Goa police were stunned when 12 of its personnel, including high ranking officers, were found to be having a nexus with drug peddlers in the state. All those involved were suspended from the job.