The allegation came as the MCD was drawing flak for its unsuccessful attempt to make the city free of stray cattles before the Commonwealth Games.
Vijay Pandit, a BJP councillor, raised the issue in the Standing Committee meeting and was supported by several members who demanded immediate suspension of the official who was facing the allegation.
Pandit said several complaints were filed by the dairy owners that instead of catching stray cows, the MCD employees were picking up animals from private dairies.
He alleged that the MCD officials were harassing dairy owners and extorting money in the name of catching stray animals.
"It is shocking that they sell these cows rather than sending them to designated centres," Pandit claimed.
Standing committee chairman Yogender Chandolia asked Municipal Commissioner K S Mehra to suspend the official and initiate inquiry into the matter.
Mehra said action would be taken after conducting an inquiry.
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