The suspension followed an inquiry into the scholarship claims submitted by about 90 schools to the Adi Dravida students, District Collector J Kumaragurubaran said.
The headmasters of primary and high schools in collusion with some others, including education department officials, had misappropriated the annual scholarship given to each Adi Dravida student during 2010-11 and 2011-12.
The exact quantum of money involved in the scam was yet to be ascertained, officials said.
