The police have booked the head-mistress of the school following the incident.
According to the Nalgonda Police, the incident occurred last afternoon when the boy, a student of class 6, and his friend had gone out of their school to attend the call of nature.
"While cleaning himself, the boy lost his balance and fell into the canal. His body was recovered later," said Nalgonda I Town SHO T Srinivas.
In a complaint lodged with police, they alleged that the students were not encouraged to use toilet on the school premises and made no efforts to stop them from defecating in the open, the officer said.
"Though, there are two toilets for boys and girls, the toilet for boys was not in use. The boys used to go outside to relieve themselves," the official said.
Police have booked the headmistress under section 304A (causing death by negligence) of the IPC, Srinivas said, adding that further probe is on.