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Jagman recorded his confessional statement under Section 164 of the Indian Penal Code in the court of Kharar Roshan Lal Chohan on Sunday.
His application to turn approver has been forwarded to the court of a special judge at Ropar.
Jagman was arrested last week from his Chandigarh residence from where Rs 12.8 million was recovered.
His confession had led to the tracing of five lockers belonging to Sidhu's relatives from where Rs 81.6 million was seized.
Jagman also revealed Sidhu's modus operandi in the alleged cash-for-job racket.
Earlier, Chohan had rejected the prepared statement, which Jagman had brought to the court, and directed him to make a fresh statement in the court, which went on for five hours.
The contents of the recorded statement are not known as it was recorded in-camera with no one, except the public prosecutor, being allowed to be present.
Jagman had not availed the services of an advocate saying he was making the statement voluntarily without any pressure.
Jagman, who was remanded to judicial custody till May four, allegedly operated the accounts and five lockers of Sidhu's relatives - his brother, sister-in-law and mother - in the IndusInd Bank in Chandigarh.
Jagman has also told officials about the PPSC chairman having transferred some money abroad, including Rs 10 million to Luxembourg, allegedly through hawala (illegal) channels.
He revealed details about some other properties, including at Delhi and Chandigarh, allegedly held by Sidhu.
Jagman had also told the investigators that he had not gained anything from the entire episode.
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