IAS officer Parampal Kaur Sidhu's Voluntary Retirement Scheme (VRS) was turned down, following which the BJP leader threw a challenge to the AAP-led Punjab administration to take whatever action it can and asserted she will contest the Lok Sabha polls.
A 2011-batch IAS officer, Sidhu, who is contesting the Bathinda parliamentary constituency on a BJP ticket, had put in her papers last month seeking voluntary retirement, also requesting that the condition of a three-month notice period be waived.
Later, she joined the BJP in Delhi.
The state government rejected her request for voluntary retirement for allegedly "falsifying" her grounds and asked her to resume her duties immediately or face action.
The Centre's Department of Personnel and Training had earlier relieved her of duties after accepting her resignation.
Reacting to the state government's communication, Sidhu on Wednesday said she has already been relieved by the Centre.
She said she would submit her reply to the state government after the June 1 Lok Sabha elections in Punjab.
"They (AAP government) just want to waste my time as they are rattled," she said while talking to reporters in Bathinda.
"I can do whatever I want to do after my retirement. I have entered politics now to serve the people and my only goal is to work for Bathinda development," she said.
The Punjab government can take whatever action it wants to take, but I will not resume duties again, she asserted.
"The central government has accepted my resignation and I will contest the election from Bathinda and file my nominations soon," she added.
Accusing the AAP government of hypocrisy, she said it talks about the shortage of IAS officers whereas many officers have been sitting idle without any department or work.
To a question on the state government's alleged charge of falsifying the grounds for resignation, she said she had written that she wanted to be with her aged mother in Bathinda and also about pursuing other plans in life.
Sidhu is the daughter-in-law of Akali Dal leader Sikandar Singh Maluka.
After she joined the BJP on April 11, Punjab Chief Minister Bhagwant Mann said that the state government had not accepted her resignation as an IAS officer.
At the latest, Sidhu was posted as the managing director of the Punjab State Industrial Development Corporation.