This exactly is what happened. Could any government in Lucknow have reacted differently on the eve of crucial elections?
Bhati, ofcourse, lost a winning hand. He was keen to create the impression that the Samajwadi Party high command was supporting him by suspending Nagpal. The Samajwadi Party, meanwhile, was paranoid that it must not be seen to be supporting the demolition of a mosque. And it had to punish Nagpal before the Congress took advantage.
Postscript: Should we not spare a thought for the Muslims trapped during Ramadan in a needless controversy about a mosque which does not exist? It was a tarpaulin roof and a six feet high brick-and-mud wall demolished at Nagpal's behest. No onion dome, no minarets, nothing.