Katha follows Chitra, a withdrawn young woman who takes up a teaching job in Araku while still recovering from having survived her family's murder, and Krishna, an aspiring filmmaker visiting the area to shoot a test scene and finish his script. The two strike up a friendship, but everything changes when Chitra spots what looks like a killing through her binoculars, only for the police to find no proof it happened, leaving her to doubt her own mind and setting off a tense investigation into what she really saw.
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