He added that a probe, led by the chief secretary, had also been ordered.
Tandon told reporters here that "stringent action" would be taken against those responsible for the tragedy after the probe panel submitted its report.
"Till then, we are suspending the principal of Baba Raghav Das Medical College with immediate effect for his irresponsible act," he added.
The minister said on August 1, the dealer (oxygen supplier) had written a letter to the principal of the medical college, Dr Rajiv Mishra, demanding payment of an outstanding amount.
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Stating that the dealer claimed that his dues were cleared only on August 11, Tandon said, "Why was there a delay in payment, why the supply of oxygen was stopped -- these aspects will be probed by the panel."
Meanwhile, Chief Minister Yogi Adityanath informed through his official Twitter handle that Prime Minister Narendra Modi had sought information about the tragedy and on his instructions, Union Health Minister J P Nadda and Union Minister of State for Health Anupriya Patel had also inquired about it.
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