The deceased were identified as Sudhira Natua (32) of Gobindapur village and Sanjay Swain (30) of Dhanantara village.
Police said at least 20 criminal cases were pending against Sudhira while the criminal record of Sanjay was under verification.
The injured person hailing from Dhenkisala village was admitted at MKCG Medical College and Hospital here. He has sustained bullet injuries and his condition was stated to be serious, hospital sources said.
Though the exact reason behind the incident was under investigation, preliminary inquiry revealed that past enmity was the cause of the incident, said Additional SP BB Sahu.