Constable Pramod Tawade, who was apparently moved by Thackeray's speech expressing solidarity with the police personnel and media persons, attacked during the August 11 protests against violence in Assam, had greeted the latter with a rose flower.
The Police Department, which had earlier served a show cause notice to him, has now stopped his increment for three years.
"His three years' increment has been stopped," they said.
Tawade, who was not posted for arrangement duty at Azad Maidan for Thackeray's rally on August 21, had come to the venue without seeking permission of his superiors. On the occasion, he went up at the podium and offered a rose to the MNS chief.
The departmental inquiry into Tawade's case was conducted by Additional Commissioner of Police (armed forces) Madhu Chavan, who later submitted a report to the Mumbai Police Commissioner indicting him of "indiscipline."
According to sources, on August 21, Tawade had come to the office at 11 am and worked till noon, but was later seen greeting Thackeray with a flower.
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In August 2010, Tawade had alleged that some CISF men had assaulted him in the traffic department at Colaba, south Mumbai.
In 2011, he had sent a wireless message saying some policemen were beaten up, which later turned out to be "false," they said.