District Collector V. Palanikumar suspended four officials in the tehsildhar office and three police personnel on Saturday.
Meanwhile, the bodies of 31 people were handed over to their relatives.
While Chief Minister M. Karunanidhi announced a solatium of Rs.100,000 each for the family members of those dead, Leader of the Opposition and AIADMK general secretary J. Jayalalithaa demanded Rs.300,000.
As many as 32 people were charred to death when the fire suddenly enveloped a firecracker godown in Pallipatu village in Thiruvallur district, about 90 km from Chennai, on Friday night.
Traders in Pallipatti took out a procession Saturday to condole family members of those who died in the blaze.