This comes after a series of investigative reports on Gurjit, who had come under fire from the Opposition for his alleged involvement in sand mining auctions.
Gurjit, an MLA from Kapurthala, had tendered resignation earlier this week, after being accused of illegally bagging sand mining contracts.
Gurjit had kicked up a controversy in May last year after his Nepalese cook Amit Bahadur won a sand mine bid worth Rs 26.51 crore at Saidpur Khurd village in Nawanshahar. Some mine contracts were also bagged by one of his close associates Captain JS Randhawa.
The company floated by the minister in his cook's name is also under the scanner for borrowing Rs five crore from a contractor who is accused of a multi-crore scam in Gurjit's own department.
Meanwhile, Gurjit's family-owned company Rana Sugars Limited is also accused of raising and parking nearly Rs 100 crore in a foreign account.