Rohit (8) and his sister Sunita (11) died after eating the cake, while their father Kameswar Gouda and elder sister were struggling for survival at MKCG Medical College and Hospital here. The incident took place on Friday.
"They were first admitted at sub divisional hospital at Chhatrapur on Friday. Then they were shifted to medical college, Berhampur, where the two succumbed to their illness," police said.
The condition of Kameswar, a daily labourer and his elder daughter was stated to be critical, doctors said.
"We suspected the deaths was due to food poisoning," said inspector in charge, Chhatrapur, BP Patra said.
Police however would conduct an inquiry into the incident, he stated.
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