A government spokesperson yesterday said that Singh was suspended for the alleged losses.
However, Punjab Local Bodies Minister Navjot Singh Sidhu sought to clarify that there were no suspension orders against the mayor but only a show cause notice was issued.
Talking to reporters in Mohali, the mayor today said that he came to know about the issue through media that the state government had, in an official press statement, mentioned that he was suspended, but later another statement was issued in which it was said that a show cause notice was issued against him.
He claimed that since "he had done no wrong, he was consulting his lawyers and will file a defamation suit against those who had tarnished his image".
"I will file a defamation suit because my image has been tarnished. I am consulting my lawyers in this regard. We are finding out who all are behind the entire thing and tarnished my image," the mayor said.
Sidhu told reporters that the government had suspended three other officials, including the Municipal Corporation commissioner, in the matter of causing alleged financial losses to the Municipal Corporation, Mohali.
When asked that earlier it was mentioned in the official press statement that the mayor was suspended, Sidhu replied, "there are many things that come in the media, but later things become clear."
When asked to respond to the allegations that a tree- pruning machine was purchased by the municipal corporation at an exorbitant rate, Singh rubbished the charge and denied any corruption angle involved in this.
"All these charges are baseless. As this machine, which will have multiple use, including in tree-pruning, garbage dump cleaning, cleaning signboards etc, was purchased from Germany, a part of the cost component was in paying duties," he said.
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