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As per reports, the incident took place near Station Road when the victim, identified as Chandan Behera (12) of a nearby village, riding the bicycle met with the accident.
The irate locals set the vehicle on fire and assaulted the security personnel, causing injury to two of them, the police said.
The injured were taken to hospital for treatment and their condition is stated to be critical.
Meanwhile, police personnel have been rushed to the spot to restore normalcy.