"The proposal to suspend Paraskar has been sent to Chief Minister Prithviraj Chavan," a Home Ministry official said.
A court had recently granted him pre-arrest bail, observing the complainant's behaviour and her e-mail exchange with him suggested consent.
Paraskar filed pre-arrest bail application on July 25, a week after an FIR was registered against him by suburban Malwani Police under sections 376(2)(rape by a police officer), 376 C (intercourse by superintendent of jail, remand home, etc) and 354(D) (stalking) of the Indian Penal Code.
The complainant, a 25-year-old model, alleged that Paraskar (57) molested and sexually assaulted her on two occasions in December 2013.
According to her, she had met Paraskar first in 2012 when he was Additional Commissioner of Police (ACP) with regard to a case.
Paraskar's lawyer argued that the allegations were false and pointed to the delay in registration of FIR.
Earlier this month, Shiv Sena had backed the DIG saying, "Cases of charging men with molestation and rape in hi-fi societies to create hype is on a rise now. It has almost become a fashion. After he has served for so many years in the police force, one model now charges DIG Sunil Praskar with rape and in one night he becomes a villain. Such accusations have become good weapons to seek personal revenge," the party had said in its mouthpiece 'Saamana'.
Later, the model's lawyer Rizwan Siddiqui had also backed out from the case by claiming that she had framed the cop to enter a TV reality show.
(With PTI inputs)