The deceased were identified as Ester Lenka (48) and her niece Madhusmita Lenka (17), the police said.
While Ester was a teacher, Madhusmita was a college student, a police officer said, adding both were staying at quarter no D-48 in the colony.
The incident came to light after local people informed the police that Ester's house was locked from inside for the last two days, the officer said.
Only a window was found open at the quarter, he said.
The officer also said that Ester's family members alleged that her husband Braja had killed the duo over family dispute.
Braja was not staying in the quarter for the last one year and had come to the quarter on September 25, a senior police officer said.
"A murder case has been registered and we suspect the involvement of Ester's husband Braja and he is absconding," said Deputy Superintendent of Police (Rourkela) Krutibasa Jena.
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