A large number of parents and locals today gathered at the school, located in R C Puram area near here, to protest against the incident.
Telangana's IT minister K T Rama Rao condemned the incident and said he would take up the matter with deputy chief minister and education minister Kadiyam Srihari.
The state government today ordered an inquiry into the matter and asked the district education officer to submit a report.
"She was not even bothered to listen to my child's explanation that a note was already written by us in her diary requesting to allow for one day without uniform," he said.
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"She (the teacher) dragged my child forcefully and asked her to stay for five minutes inside the boys' washroom as a punishment for not wearing the uniform," he alleged.
"This act of abuse has had a bad impact on my child and hurt her dignity," he said.
The woman teacher, however, denied the allegations and told mediapersons today that as the girl was not wearing uniform, she only asked her the reason.
She said the girl was standing near the boys' washroom and was never asked to stand inside it.
Reacting to the incident, K T Rama Rao, in a tweet, said, "Ridiculous & absolutely inhuman. Will take it up with Hon'ble Deputy CM for appropriate action on the school."
The girl's father yesterday approached city-based NGO 'Balala Hakkula Sangham' over the incident.