Uttuk Manjhi (35), wife of a daily wager Barho Majhi, was beaten up by three men before they set her on fire after she refused to part with the money received for construction of her house under 'Indira Awas Yojana' last night.
The woman sustained severe burn injuries and was rushed to the Anugrah Narayan Magadh Medical College and Hospital where she died late last night, police said.
The victim's father Sahdev Manjhi has lodged a named FIR against the three men who are absconding.
Raids are being carried out to arrest the culprits, police added.