Deepak Sahu (28) had a dispute with some person during a village fair in Rangaon on Sunday, Additional Superintendent of Police Sudha Singh said.
She said that the policemen on duty took Deepak to Madwara police station and his body was found yesterday noon.
Alleging that the man was killed by the policemen, his family members and local residents staged a road blockade demanding arrest of the guilty.
The deceased's brother Rajesh has alleged that the youth died after being beaten up by police, the SP said.