Mumbai Police Commissioner D Sivanandan had on Saturday, Jan 2, recommended the five policemen's suspension.
Maharashtra Home Minister RR Patil cleared the suspension on Sunday morning, Jan 3, after holding talks with Chief Minister Ashok Chavan.
The development came after television channels aired footage showing the policemen partying with the underworld don Chhota Rajan.
Acting quickly after scenes of the policemen dancing with the don, Sivanandan recommended suspension of Deputy Commissioner of Police Vishwas Salve and four others.
The other four include Assistant Commissioner of Police Prakash Wani, Senior Inspector RS Khakale, Crime Branch Inspector Praful Phadke and Crime Branch Assistant Sub-Inspector T Salunkhe.
The party took place in a private club in Chembur, a northeast Mumbai suburb where the policemen were seen eating, drinking and dancing with men from the underworld.