The chief minister has issued a direction for the revenue divisional commissioner (central division) to start an investigation, official sources said.
Gandhi, who serves as the editor of 'Utkal Prasang'- a monthly magazine published by the state government, was injured and his vehicle damaged in the attack.
The leader was first taken to a hospital on Jajpur Road and then to the SCB Medical College and Hospital in Cuttack, police said.
According to an FIR filed by him, Gandhi was dragged out of his car and thrashed by four motorcycle-borne youths, suspected to be supporters of Korei MLA Pritiranjan Ghadai.
The assailants fled when some of Gandhi's supporters, who had congregated at a temple nearby, rushed to the spot after hearing his cries for help.
Ghadai, however, has denied involvement in the incident.