In a letter to Prime Minister Manmohan Singh, he said the Ludhiana Sikh Migrants Welfare Board had brought to his notice the alleged large-scale misappropriation of funds on the basis of fake identity cards issued at the behest of some ruling party leaders.
"I am constrained to bring to your kind notice a case of extreme hardship, disappointment and misery inflicted on nearly 22,000 Sikh migrants of the 1984 riots who settled in Punjab after migrating from all over the country," he said.
A vigilance inquiry found that fake identity cards were issued to distribute rehabilitation allowance of Rs two each, he wrote in the letter.
"The inquiry was, however, dropped on flimsy and unconvincing grounds of shortage of staff," Bajwa said.
"The huge amount of the grants given by the Central government, meant for riots victims, has been squandered away by ruling party politicians in connivance with the state government," he said.
The Congress leader said the matter be handed over to the CBI for investigation as the funds came from the Centre.
No senior SAD leader was available for comment.
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