Officers rushed to Abanal village near Khanapur in Belagavi district after nearly half the villagers tested positive for COVID-19 on Tuesday.
Health Department officers said that during random testing, 144 of the 360 villagers were found infected. Most of them are workers and had returned from Goa and Maharashtra.
Their condition is stable. Most of them are non-symptomatic, while some have mild symptoms.
All of them have been asked to remain in home quarantine. A testing centre has been set up in the village.
The district administration is considering declaring the whole village as a quarantine zone.