The victims have been identified as Surendra Surin alias Dela and Simran Surin, both residents of Chota Kuira, Sub-Divisional Police Officer (Chakradharpur), Alok Priyadarshi said.
Confirming the incident, Superintendent of Police, N K Singh said it was suspected to have taken place over the share of levy.
A police team has rushed to the spot to investigate the incident, he said.
Surendra was an accused in the killing of Kuira village chief Jaipal Purty in 2013 and had been to jail.
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