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Kunnamangalam police said they have invoked Section 153 (wantonly giving provocation with the intent to cause riot) against Prof Shaija A, a senior faculty member at NIT-Calicut.
The government itself has admitted to the crisis and added that the coming financial year would be worse.
The elephant was caught and shifted into the animal ambulance by 10.15 pm on Friday.
Introducing the resolution, Finance Minister K N Balagopal said the Centre has reduced Kerala's borrowing limit and slashed the revenue deficit grant.
The Tehsildar has announced that students should not be sent to schools centred around Mananthavady town until further notice.
A large number of students gheraoed the NIT staff in protest of the suspension. The protests went late into Thursday night.
There was no additional concession in taxes or give-aways including in the widely-expected PM-Kisan scheme.
The finance minister said that the agriculture sector is poised for inclusive, balanced higher growth and productivity.
The institute will be closed from Friday through Sunday, with all academic activities, including exams, placements, and interviews, being postponed until further notice.
She is expected to highlight the Modi government's 10-year economic performance but will hold back on expensive schemes to lower the fiscal deficit.