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Sandeep Shetty Mogaru, a member of the Ganjimutt gram panchayat was a local BJP activist.
He was missing since Wednesday afternoon and was found hanging inside his office at Neermarga later in the evening, police added.
Mogaru, a bachelor, was working as an insurance agent. Financial issues might have forced him to take the extreme step, sources said, adding a death note has been recovered from the office.