2 min readBengaluruUpdated: Mar 23, 2026 12:25 PM ISTProsecutors opposed the bail plea, arguing that Kataraki's police custody was essential (Image generated using AI).A Bengaluru sessions court last week denied anticipatory bail to a government school teacher in a Rs 3.62-crore cyber fraud case, citing suspicious transactions in his bank account that far exceeded his salary.Indudhar Mallikarjun Kataraki, 25, a resident of Shigli in the Gadag district and a mathematics teacher in Gokak, sought pre-arrest bail under Section 482 of the Bharatiya Nagarik Suraksha Sanhita (BNSS) 2023.The case originates from a complaint filed by K K Belliyappa, a senior citizen from Kodagu, who alleged that he was lured into investing in an online trading scheme and subsequently defrauded of over Rs 3.62 crore. According to investigating officials, the funds were transferred to mule accounts.The case, originally registered by the Kodagu CEN Police, was later transferred to the Criminal Investigation Department (CID) in Bengaluru for further investigation.The investigating team found that Kataraki’s State Bank of India (SBI) bank account had a dramatic spike in transactions. While his account recorded transactions of only around Rs 5 lakh in 2021, the figure allegedly jumped to Rs 30.52 lakh in 2025, excluding his salary credits, raising red flags about unexplained deposits and withdrawals.The police issued a notice to Kataraki in January 2026, directing him to appear for questioning by February 2. He failed to comply, citing professional commitments. His counsel argued that February 2 was the last date for students to apply to government residential schools, and that Kataraki had been tasked with assisting students in filing online applications. He also said that he was occupied with preparing question papers and conducting extra classes for SSLC students.Prosecutors opposed the bail plea, arguing that Kataraki’s police custody was essential to unravelling what they described as a well-organised, interstate cybercrime network. They contended that Rs 3.58 crore remained unrecovered and that the identities of the kingpins behind the fraud were yet to be established.Story continues below this adOn March 17, the court noted that Kataraki had not submitted his bank statements, despite claiming false implication, and rejected his anticipatory bail application.Stay updated with the latest - Click here to follow us on Instagram© IE Online Media Services Pvt LtdAdvertisementLoading Recommendations...