The incident happened at Mobarakpur village under the jurisdiction of Bhagwanpur police station.
The deceased leader was identified as 42-year-old Nantu Pradhan, the police said.
While Pradhan died on the spot, the three injured were admitted to Tamluk hospital, they said.
A trouble was brewing between the leader and the villagers for sometime since he using a portion of an agricultural land for prawn farming and he was bringing water from the Kansai river for the purpose, the police said.
The two sides had a heated exchange of words today and broke into a fight. The villagers allegedly hurled bombs and fired at Pradhan and his men, the police said, adding that the leader died on the spot.
Pradhan's family lodged a complaint with the police.
Disclaimer: No Business Standard Journalist was involved in creation of this content