The incident came into light after Delhi Deputy Chief Minister Manish Sisodia, who also holds the education portfolio, went on surprise inspection to the Rajendra Prasad Sarvodaya Vidyalaya at the President Estate.
According to the Delhi government, several fake receipts for thousands of rupees every month were found, even if nothing was purchased.
"I have come for surprise inspection at the Rajendra Prasad Sarvodaya Vidayalaya. A lot of irregularities are visible here," Sisodia tweeted.
Though there were students of food processing in the school, the building did not have any laboratory for the practicals. Still items like mutton, chicken and olive oil were purchased by the authorities, he said in a series of tweets.
"A blank bill book has also been found in the cupboard of the principal's room. Following the irregularities the principal of the school is being suspended," Sisodia said.