Making a statement in the Assembly, Patnaik said the four personnel of the SOG were suspended and arrested after recovery of the body of Chittaranjan Sahu.
The injured has been identified as Nutan Naik.
Terming the death of Sahu and injury of Naik as an "extremely unfortunate incident," Patnaik said the government has decided to give a compensation of Rs 10 lakh to the next of the kin of the deceased and bear the entire cost of treatment of the injured Nutan Naik.
Stating that a case of theft was informed to the SOG unit deployed in Soseng village near the Sunabeda Reserve Forest, a highly sensitive Maoist affected area, the Chief Minister said the SOG personnel and villagers had apprehended the three suspects including the deceased Sahu, who confessed to the crime.
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The police also recovered the stolen items, he said.
The Government got an information that the SOG unit was routinely informed of the crime in view of the fact that the police station station was at a distance of about 40 km, Patnaik said.
"Following recovery of the body, they (jawans) have been charged with murder and causing disappearance of evidence. The government will take stringent action against those responsible. No one will be spared," he said.
Disciplinary action involving major penalties would also be initiated, Patnaik added.