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The man, Bapi Nayak of Aska, was fired on by motorcycle-borne gunmen who fled immediately, police sources said.
He was declared dead in hospital, they said.
"Preliminary investigation showed previous enmity might be the reason behind the incident," Superintendent of Police (Ganjam) Ashis Singh said.
The vicitm had about seven cases against him, mostly relating to illegal transport of liquor, the sources said.