"We have placed Pritilata Mohanty under suspension as she spent more than 48 hours inside the jail.
Any government employee spending two days in jail is liable for suspension," said Balasore district sub-collector P C Marandi.
He said the state government took action after getting confirmation about Pritilata's stay inside the prison from the Superintendent of the District Jail at Balasore.
Pritilata, along with her husband, was arrested from a flat in Howrah district of West Bengal on March 30.
She was sent to jail on the same day and spent three nights before getting bail yesterday.
While Pritilata was suspended from the RMC post, Raghunath Mohanty had also been removed from the post of vice-president of ruling BJD.
Mohanty has also resigned as a minister in the face of dowry torture case on March 15.
The Mohanty couple was arrested on the basis of an FIR filed by their daughter-in-law Barsa Swony Choudhury who alleged dowry torture by her in-laws.
Mohanty's son Raja Shree was also arrested and is now lodged at Balasore jail on similar charges.
Barsa in her FIR had alleged Pritilata used to physically assault and mentally torture her for dowry.
Meanwhile, a report from Balasore said the Human Rights Protection Cell (HRPC) police today seized some dowry items from Mohanty's residence at Amarda Road in Balasore.
Barsa's father and her uncle accompanied the HRPC team during the seizure.