While police said they registered the case against Damodar last week, official sources said the principal has been suspended in connection with the alleged incident after an internal probe.
Police said the 14-year-old girl was allegedly groped during Diwali festival last year at the quarters of the principal located on the premises of the residential school.
But, the case was registered last week after the girl's mother lodged a police complaint about a week ago, they said.
"A case under relevant sections of Indian Penal Code and the Protection of Children from Sexual Offences (POCSO) Act was registered against Damodar last week," a senior police official said.
"It is shocking that a man with such antecedents was allowed access to the girls. Our sources are telling us that there are other girls who have been abused as well," said Achyutha Rao, director of Balala Hakkula Sangam, a child rights organisation.
Mr Rao said the accused had political connections at the highest level in the neighbouring state of Andhra Pradesh and had got a senior leader to intervene on his behalf with the Telangana police. "We also have information that he is in hiding within the city," Mr Rao said.
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