The map published in the diary distributed among students of Green Bells Public School excluded some parts of Jammu and Kashmir from India.
The three who have been arrested for sedition are owner, principal and the man who runs the press where diaries were printed. Trio have been sent to jail.
The police action came after a complaint was filed by a Bharatiya Janata Yuva Morcha (BJYM) activist, reported the Indian Express.
The Green Bells Public School is located at Burhar town in Shahdol. Around 1000 students study here.