The Uttar Pradesh government insists that action was not taken against Nagpal because of sand mining but because she ordered the demolition of a wall of a mosque.
Her colleagues in the Indian Administrative Service (IAS) are up in arms over the suspension and have urged the central government to intervene.
Explaining the likely role of builders in the suspension, activist Nagar told IANS: "It is the builders who benefit the most from illegal sand mining as the mafia works for them.
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