Three boys studying in a private school in Punganur near Tirupati were forced to strip and stand outside their classroom as punishment for not completing their homework.
The district administration has ordered a probe into the incident after a video of the incident went viral.
The video purportedly showed the Class III students standing naked under the sun with their hands up.
Chittoor district collector P.S. Pradyumna ordered an investigation and said stern action would be taken against the management.
A woman teacher had allegedly awarded the punishment to the children on Thursday for not completing their homework, a district educational department official said.
If proven guilty, the government recognition given to the school would be revoked, he said.
Based on a complaint filed by parents of the students, police have registered a case against Chitanya Barathi English Medium School, police said.