The assailants of a crime syndicate had allegedly shot dead contractor Babu Sethy on October 19 and the murder was fallout of rivalry between two gangs of criminals, Sub Divisional Police Officer Nrusingha Charan Swain said.
There was dispute over payment of money between the contractor and the gangsters, which had resulted in his murder, he said.
At least two contractors have been gunned down by gangsters since March last in Kendrapara district. The motive of the killing was tender-related dispute and extortion, police said.