Pradip Parida alias Padi (24), a native of Bhakutidian village under Khallikote police limits in the district, was nabbed from Kairasi yesterday, said Inspector In-Charge of Khallikote police station, Bibekananda Swain.
About 40 gram gold and 750 gram silver ornaments and a motorcycle were also seized from his possession, while his associate, Chitrasen Jena, managed to escape.
Police said Padi is a member of Bibhu Jena gang and was allegedly involved in two murder cases and several extortions and murder attempts. Jena was recently arrested during an encounter with police in Bhubaneswar.
"We are checking with all police stations for his complicity in other cases," he said.
Police suspect the ornaments recovered from him were looted from a jewellery shop in Bhubaneswar and a silver trader at Sana Ghati Square near Khallikote.
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