It was alleged that the principal had usurped the grants given by the state government for mid-day meals, books, uniforms and transportation.
The division bench comprising chief justice Sanjay Kishan Kaul and justice Augustine George Masih also directed the DGSE that if after inquiry, any corrective action was required, that might be taken.
The directions came while disposing of a public interest litigation filed by Amrik Singh and three other residents of Sahnewal village.
The petitioners had informed the court that seven sarpanches of Sahnewal, Ghuduwala, Danewala, Jarana Kalan and Maewala had sent a complaint to the DGSE on May 29. The sarpanches had alleged that the principal had not made any arrangement for supply of hygienic drinking water to students as the underground water of Sahnewal village contains uranium and is harmful for the health of students. But till date the DGSE had not responded to their complaint, they had alleged.