The victim, a nursery student, was identified as Syeda Xainab Fatima and the incident that took place at about 9.15 AM sparked protests by her shocked family members and outraged public.
"School principal Shalini and teacher Saroja were arrested on charge of negligence in connection with the incident," Deputy Commissioner of Police (East Zone) A Ravinder told PTI.
Based on a complaint filed by the parents of the girl, a case under section 304A (causing death by negligence) of IPC and relevant sections of the Juvenile Justice Act was registered against the school management and the principal and teacher have been so far arrested, the DCP said.
"The students were jostling for space and pulling each other's bags inside the lift. In the midst of this, Zaina's hand got stuck in the grilled doors of the elevator. As some one had pressed the button for the above floors, the elevator started moving and Zaina's hand and head were pressed between the elevator and the first floor concrete roof," Malakpet inspector A Ganga Reddy said.
Horror-struck children and the teacher ran out of the lift as soon as it halted and it took more than half an hour to remove the body of the child from the elevator, police said.
The District Education Officer has been summoned by the police and he will be examined whether the school management had got the necessary permission (to run the school), the DCP said.
Malakpet police station Inspector A Ganga Reddy said efforts are on to nab Satish, the Zonal in-charge of the private school management, who is absconding.
Earlier, the family members of the deceased and other local residents gathered in front of the school and held a protest demanding stern action against its management.
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