Who can remove police officer from his job

What is your problem? A citizen if decided, why? If a citizen file a case against any officer that citizen must prove the allegation. If not proved how can action be taken?

File a RTI on the relevant FIR. If it is lie, file defamation suit against him. Get information on what capacity he gave the statement, else make State a party too. Create situation so that disciplinary enquiry starts against the OC, automatically his job will be at stake!

Seek permission of the appointing authority of the deliquent police officer to prosecute him / her under section 197 Cr PC and proceed through  a local prudent lawyer.

Filing a civil suit requires no permission or sanction!

Sir P Venu. Its Criminal defamation complaint against Police officer rank of Senolior police incharge of police station for providing false information to media against the person he had problem with

Compensation for damages of reputation, image and dignity can be claimed in a (civil) suit without seeking permission of higher officers of deliquent police personnel (irrespective of his/ her rank and status in the organisation) as opined and advised by senior expert Mr. P Venu, which I endorse and appreciate.

One can file a defamation case under IPC-499 / 500  against anybody, even a police officer. The court will decide what punishment should be given. Under IPC-500 it can be simple imprisonment for 2 years. During the pendency of the case the police officer can give more trouble.