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The suspended officer has been identified as Sridhar Satare of Dharwad Rural police station.
Horatti was made the fifth accused in connection with the dispute over the management of an educational institution.
The matter was discussed at length on Thursday and Friday in the Council with the legislators condemning the move of filing of an FIR against the Speaker by the police department. MLCs, cutting across the party lines, had demanded suspension of the Superintendent of Police and Police Inspector of Dharwad district.
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Akhila Karnataka Valmiki Nayaka Mahasabha lodged a complaint against the Chairman of the Legislative Council Horatti and five others in Dharwad Rural police station in connection with the dispute over management of an education institute.
It was alleged that though Basavaraj Horatti is not a chairperson of the Sarvodaya Trust, he is misusing his authority and exercising the powers of a chairperson.
They have also alleged that when members from the mahasabha visited schools in Dharwad for inspection, the followers of Basavaraj Horatti assaulted them. The complaint also mentions that the members were abused, casteistic remarks hurled at them and damaged their car.
Earlier, Mahasabha members conducted a press conference on January 22 and alleged the highhandedness of Basavaraj Horatti in the trust affairs.
They had alleged that an advertisement was given for recruitment of vacant posts in the Sarvodaya Education Trust as per directions of Horatti and challenged him to release the documents of his authority over the trust.
(With inputs from IANS)