Madhya Pradesh Chief Minister Shivraj Singh Chouhan has ordered immediate transfer of the collector in view of the incident, a senior official said.
The woman, in her statement to the media at the district hospital where she was admitted, alleged that the collector R K Mishra called her to his residence and tried to sexually exploit her.
The incident disturbed her a great deal and subsequently she tried to commit suicide, she said.
Collector Mishra, however, said the allegations were "baseless" and it was an attempt to damage his reputation as a part of a conspiracy.
State Congress chief spokesperson K K Mishra termed the incident as serious, saying that women's security was a major challenge for the state government.
"If police acted in such an irresponsible manner with a woman principal, then one can imagine how they deal with other women," he said.