A woman was burnt alive at Dhaniapada village under the Marshaghai police station in the district on Monday night when she asked a youth to repay a loan which she had given him.
The deceased was identified as Subhadra Behera (33).
Reports said Subhadra had given Rs 50,000 to one Biswajit Swain of the village as loan. The woman went to his house seeking repayment of the amount, during which a heated altercation took place between the two.
In a fit of rage, Biswajit and his family members allegedly poured kerosene on Subhadra and set her on fire. Villagers rescued Subhadra in a critical condition and rushed her to the District Headquarters Hospital. She was later shifted to SCB Medical College Hospital in Cuttack as her condition deteriorated.
But she succumbed to the injuries at the hospital. Acting on a complaint lodged by the brother of the deceased, police have registered a murder case and started investigation.
On the other hand, the accused are on the run after the incident and efforts were on to trace and nab them, police sources said.