"Headmistress of the Rail Vihar Government High School Bijaylaxmi Mohanty has been transferred for not informing the guardians of the students about indiscipline of their sons," School and Mass Education minister Debi Prsad Mishra said.
He said the action against the teacher has been taken in accordance with the suggestions of the inquiry committee report.
At least four students of Rail Vihar Government High School had drowned on Tuesday while taking dip in nearby canal. All of them had bunked escaped classes.
Mohanty has been shifted to a girls school in Banki in Cuttack district.
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Mishra said though there is specific gudeline for tracking students and keeping contact with their guardians till class eight, no such provision is there for the students of standard nine and ten.
The teachers after setting up the new guidelnine would inform the guardians about abscence of their children in schools.
"The new guideline will be in place very soon, may be by end of this month," Mishra said.