"We had given them (the Class 1 and 2 officials) an extension up to March end as this was for the first time, but many have still failed to file the returns and so we have decided to withhold their salaries," Gujarat Chief Secretary J N Singh told the media.
Mr Singh expressed hope that the officials will file their annual property returns at the earliest.
There are about 12,000 officials in Class 1 and Class 2 cadre in the Gujarat government. As per the All India Services Rules, they are required to file their annual property returns.
"Shortly, we will be issuing them show-cause notices and if they still fail to do so, we will initiate departmental inquiry and take requisite action," Mr Singh said.
Last year, Mr Singh said that about 3,000 of the Class 1 and 2 officials were yet to file their property returns with the government and threatened to withhold their salaries.