The Aam Aadmi Party had dismissed the allegations, calling them absurd and baseless.
Superintendent of Delhi's Tihar Jail, Ajit Kumar, was today suspended for alleged VIP treatment to jailed Aam Aadmi Party minister Satyendar Jain.
The action was taken on the recommendation of an inquiry committee constituted by the Lieutenant Governor of Delhi after jailed conman Sukesh Chandrashekhar accused the Superintendent of jail number 7, where Mr Jain is locked up, of extending undue favours.
"He has prima facie been found to have committed irregularities that warrant inquiry," Delhi government's prison department said.
Sukesh Chandrasekhar had earlier alleged that he was forced to pay Rs 10 crore as "protection money" to Satyendar Jain through Director General (Prisons) Sandeep Goel, a stunning claim that was trashed by Aam Aadmi Party (AAP) chief Arvind Kejriwal. Mr Goel was then transferred from the Tihar Jail. The central government controls the police in Delhi.
In the letter, Sukesh Chandrasekhar had claimed, "I know Satyendra Jain since 2015... have contributed more than Rs 50 crore to AAP." He said he paid the money as he was offered a Rajya Sabha seat in return.
The Enforcement Directorate, which is investigating the money laundering case in which Mr Jain was arrested, had in court alleged special treatment to the AAP leader.
"Unknown persons were giving massages and foot massages to Jain, even beyond curfew hours. He was given special food," Additional Solicitor General (ASG) SV Raju, appearing for the ED, had said.
The ASG shared CCTV images with the court and alleged that most of the time Mr Jain was either in hospital or in jail, enjoying various facilities. The 58-year-old Delhi minister was arrested on May 30.
The Aam Aadmi Party had dismissed the allegations, calling them absurd and baseless.
Sukesh Chandrasekhar has been in jail since 2017 over charges of extorting money from high-profile personalities, including industrialists and celebrities.
Delhi Chief Minister and AAP boss Arvind Kejriwal earlier this month claimed that Sukesh would join the BJP.
"All the criminals and thieves, dacoits and conmen, all join BJP," he had said after reports about Sukesh's letter where he alleged extortion. "They can make any criminal in jail say anything against anyone. I am hearing now that in the next few weeks a criminal called Sukesh Chandrasekhar will be joining the BJP," he had said.
AAP has repeatedly claimed that Sukesh is a bogey set up by the BJP as it fears being ousted in the upcoming Gujarat Assembly elections.