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"The chief minister ordered transfer of the CMC commissioner and suspension of the deputy commissioner," Housing and Urban Development Minister Debi Prasad Mishra said.
The chief minister also asked the vigilance department to probe the matter, he said.
Patnaik's order came a day after the central division Revenue Divisional Commissioner (RDC) Arvind Padhee enquired into the allegations made by the Congress' Cuttack unit.
Congress had alleged that some ruling BJD corporators of the CMC looted relief materials procured by the civic body for distribution among the cyclone affected people.
Cuttack Collector Girish S N had also conducted a probe into the allegation.
The district administration of Cuttack had supplied around 200 quintals of rice and other materials to the CMC for distribution among 40,000 evacuees, official sources said.
While the CMC had announced to open four free kitchens to provide cooked food to the evacuees for three days, the same was not done for a single day, some Congress leaders alleged.
They also alleged that some BJD corporators had forcibly taken away the relief materials from the CMC office.
The city Congress had also filed a written complaint to the Purighat police station in the city.
