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Raman Bakshi, president of Amritsar Sangharsh Samiti, said they were extremely upset about Sidhu's absence at a time when their representative was required to be present in the area.
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Alleging that the BJP leader and former India cricketer had been "missing" from the area for a long time, a poster states that, "Sidhu had made tall promises to the people of his constituency about making Amritsar like Paris, but has betrayed them".
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Bakshi said people in Amritsar were facing numerous problems about, among others, unavailability of sand and the levying of various taxes on property.
"Businessmen in the area wanted his support for a facility for easier filing of sales tax, but Sidhu has been missing," he said.
He said that the NGO would award Rs 2 lakh to anyone who would give information about Sidhu and bring him to Amritsar.
Sidhu features in several TV shows produced in Mumbai.
Efforts to reach Sidhu have yielded no results, Bakshi said, adding that whenever they tried to contact the MP over the phone, his assistant said, "Sidhu is busy".