The incident took place last night when Gaura Chandra Dalai along with others was attending a function at the village temple.
About 50 people including some armed ultras arrived at the temple and forcibly took away Dalai.
He was shot point blank at a place about half a kilometre from the temple, police said.
The ultras left a message, saying that Dalai was regularly giving information about them to police.
However, Superintendent of Police of Koraput, Abinash Kumar said Dalai was not police informer.