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The victim has been identified as 16-year-old Srividya.
Following the complaint by the parents of the girl, the Srirangapatna Town police arrested the owner of the giant wheel Ramesh, a resident of Hosabudanuru from Mandya district.
The police said that while playing on the giant wheel on Sunday, the hair of the girl was stuck and within seconds a layer of her scalp came off. Shocked parents and onlookers rushed the girl to the local hospital.
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The police have taken up the investigation.
(With IANS inputs)