District Magistrate Ajit Balaji Joshi said he has removed Sunil Jaglan, the sarpanch of Bibipur village, from his post.
"I have asked him to hand over the records of the village panchayat to a Panch," he said, adding that an inquiry by the SDM has been ordered against Jaglan.
The villagers had complained about misappropriation of panchayat funds by Jaglan.
A preliminary inquiry was conducted against him wherein he was found guilty of providing benefits to his close friends/ relatives using these funds, an official in the district administration said.