The step was taken as a part of a major crackdown launched by the administration on terror financing.
The dismissed policemen were belonging to the border areas of the region.
The dismissed policemen have been identified as Farooq Ahmad Sheikh, Khalid Hussain Shah, Rehmat Shah, Irfan Ahmad Chalkoo, and Saifuldin, reported NDTV.
The school teacher, who was found to be involved in drug trafficking, was identified as Nazim Uddin.