Officials said the government had acted on a report prepared by the state police's crime investigation department, NDTV reported.
According to NDTV, several of the officials dismissed have been charged under the Public Safety Act, which allows people to be jailed without trial for six months.
India's northernmost state of Kashmir has been on the boil ever since the killing of Hizbul Mujahideen commander Burhan Wani by Indian security forces on July 8. Protests broke out immediately after the killing and have continued ever since.
More than 85 civilians have been killed and more than 13,000 injured so far in violent clashes with security forces.