I have implemented multiple validations in base template field items and suppressed most of the validation in each children template standard values using the "Suppressed validation rules" field. It works perfectly in sitecore content editor when I fill in the fields but in experience editor the suppress validation is not considered and it looks like its validating all the applied validations. I have set the error level to fatal hence i'm not able to save any fields from experience editor.
What am I doing wrong, Or is this a bug from sitecore?
This is a bug in sitecore 8.2 update 3. I raised an issue with sitecore support and they provided a patch to resolve the issue. I was advised not to share the patch since it is not extensively tested. Raise a sitecore bug if you come across this issue. Hopefully the issue is fixed for good in upcoming releases.