Inspector General of Karnal Range Balbir Singh suspended Sub Inspector Dilel Singh and ordered an inquiry against two other policemen in the wake of the incident last week.
Karam Singh, an employee with the agriculture department, was killed on Saturday night when a bullet hit him.
He was part of the marriage procession which was being taken out in Khurda village.
When it reached near Kashyap Samaj choupal, some persons present there allegedly objected to the high volume of the DJ accompanying the procession.
One person, who was part of the procession tried to pacify those who were objecting, but he was allegedly stabbed in the stomach and injured. Some others also sustained injuries as altercation broke out between the two groups.
In between, someone in the crowd fired a shot that hit Karam Singh leading to his death, police said.
Members of Kashyap Samaj and residents of village Khurda, today ended their three-day protest outside the Civil Hospital after an assurance by the police and district authorities to forward the demands of the victim's family to the state government.