Police have taken statements from students of the madrasa.
Punishment for not doing homework took on bizarre proportions for Class 4 students at a madrassa in Haryana. They were found in chains by their parents.
Two teachers at the madrassa, which is in Yamunanagar, have been accused in a police complaint of physically torturing students.
The teachers, Mubarak Khan and Shabbir Ahmed, have been arrested.
"We asked the teachers why they kept the students in chains, and they told us that the kid used to run away from school," police officer Roshan Lal told reporters.
Ayyub Khan was among the parents who found their children in chains, to their utter shock. "At first, we didn't believe it when my son told us that the teachers bind kids in chains at the madrasa, but when I paid a surprise visit, I was shocked to see my son in chains. I made a video clip and informed the police," Mr Khan said.
The Nusrat Ali Islamic Madrassa runs classes from 1 to 8.