The Akhilesh Yadav government had asked her to respond to a chargesheet that accused her of "poor administrative acumen and lack of foresight" for a decision that could cause communal tension in the holy month of Ramzan.
Meanwhile, the Supreme Court today refused to interfere in the case of Ms Nagpal.
"She will take care of herself, she can question her suspension at the right forum," the court told petitioner ML Sharma, who had argued that she was penalised for following the Supreme Court's own orders. IAS officers have been mandated by the Supreme Court to order the demolition of structures being built illegally on government land.
The top court also said it could consider a petition if Ms Nagpal herself approached the court.
Ms Nagpal's suspension as the SDM of Gautam Buddh Nagar by the UP government had led to widespread outrage across the country. Her supporters allege that she was victimised because she was targeting the area's politically-connected sand mafia.
However, the Samajwadi Party has defied calls to reconsider her case, even as Prime Minister Manmohan Singh said he was looking into it and "rules will be followed".
The prime minister had been asked by Congress president Sonia Gandhi to ensure that the officer was not treated unfairly.
Two days ago, the Uttar Pradesh government also transferred Ms Nagpal's husband Abhishek Singh, a Noida officer who has been now posted in Jhansi. State government officials said it was a routine transfer as he was among 16 officers from his batch who have been posted as Joint Magistrates across the state.