A 14-year-old girl was found dead in her house in Kadampur in Bagalkot district on March 16.
The body of Divya Barker was found by her parents in her room.
They told the police that she was upset about an incident in her school and cried herself to bed.
Police said that a lady teacher at the school had accused Divya and other girls of stealing ₹2,000 and had strip-searched them.
The girls had felt insulted, police said. They suspect that she decided to end her life.
Investigators are questioning the teacher and the school staff. A case has been registered and further investigations are on.
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