They were suspended by Coimbaore police DIG, Tiwari, in charge of salem.
Police said Palanisamy was murdered by five persons, who police rounded up.
DMDK MLA Prathiban held talks with those concerned and it was agreed that Rs 15 lakh would be paid by police to the victim's family and to take action against the police personnel.
The 22-year-old contract labourer of Mettur thermal power plant died in police custody yesterday after he was taken in for questioning over the death of a worker,triggering protests by his family who alleged he had been tortured to death.
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