Vigilance Inspector General of Police (IGP) S K Asthana has been placed under suspension with immediate effect, an official spokesman said here.
"Disciplinary proceedings shall be conducted on a day to day basis and completed at the earliest in a period not exceeding two months," he said.
Appropriate departmental action shall also be taken against those units which provided the unauthorised manpower to Asthana, the spokesman said.
The action has been taken on the directive of Deputy Chief Minister Sukhbir Singh Badal who also holds Home portfolio.
There were complaints against Asthana about manpower kept by him, sources said adding that recently the DGP had told the Punjab and Haryana High Court on a petition that there were 31 unauthorised gunmen placed at the IGP's services.
Earlier, Asthana was replaced as DIG Patiala range by the Election Commission before the Punjab assembly polls.