The high court directed the state government to submit a compliance report on the matter within four weeks.
The direction from the high court came on a public interest litigation filed by lawyer H.C. Arora challenging the security being provided to people from outside the state at the cost of public money.
Arora said the security cover provided to outsiders was illegal.
The controversy about misuse of police security erupted after a shootout at a Delhi farmhouse of billionaire liquor baron Ponty Chadha and his brother Hardeep. Both the brothers were killed in the shootout Nov 17 last year.
Punjab Police armed security was provided to Ponty Chadha and Hardeep without their holding any official position in the state.
Sources in police said at least eight armed security personnel were provided to the Chadha brothers, mainly owing to their proximity to politicians in Punjab.
Punjab Deputy Chief Minister Sukhbir Singh Badal, who is also the state home minister, earlier this year cut down the number of security personnel provided to VIPs and other influential people. However, the security cover to the Chadha brothers was not reduced.
Punjab Police security has been provided, among others, to former Haryana chief minister Om Prakash Chautala, Himachal MP and Bharatiya Janata Yuva Morcha (BJYM) president Anurag Thakur, Akali Dal Delhi unit chief Manjit Singh GK and others.