The nod came after the Special Investigation Team (SI), probing the case, filed a supplementary chargesheet in a local court along with the prosecution sanction order.
Sukhraj Singh said Congress came in power with a promise they would take action against culprits of sacrilege and the police firing incident but nothing happened.
The National Democratic Alliance (NDA), a 20-party coalition is fighting the 2019 Lok Sabha elections under the leadership of Prime Minister Narendra Modi.
Phoolka had resigned from the Punjab Assembly in October last year citing the alleged inaction of the State government in dealing with the Bargadi sacrilege case and Behbal Kalan firing case.
Earlier this month, the government had blocked the Facebook and Twitter accounts of Gurpatwant Singh Pannun, the legal advisor of separatist group Sikhs For Justice