Chief Minister Kejriwal suspended the three oficers on charges of seeking bribes to clear the use of water for construction and meter reading.
Delhi's Urban Development and Public Works Department (PWD) Minister Manish Sisodia said cases will be filed against the three officials.
The state government has also ordered the transfer of around 800 officials as part of the streamlining exercise.
The AAP was voted to power on December 8 on promises that included providing about 700 litres of free water per household and a halving of power tariffs.
--ANI (Posted on 07-01-2014)