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Ranganath, 60, principal of the Havanur Public School in suburban Agrahara Dasarahalli in Bengaluru, was teaching Class 10 students when the gang barged into the classroom and hacked him to death, they said.
They later ran away in the car in which they came to the school, police said.
One of the gang members was arrested later from Bengaluru’s Mahalaxmi Layout area, based on a tip off.
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Police suspect a land dispute relating to the school building to be the reason behind the murder.