The baby was reportedly missing from the village since Wednesday morning while his father had alleged foul play suspecting some neighbourers hand behind it.
Blaming the police for their inept handling of the incident and alleging that the baby was kidnapped and murdered, irate villagers set afire a police vehicle while three platoons of force had been deployed as tension continued to prevail.
The incident took place at Sainsho village where Abhimanyu Mohapatra of the village yesterday had reported that his only son Chintui went missing while playing outside their house.
The body of the baby with injury marks on its neck and a bleeding nose was traced today morning after which tension mounted in the area.
"We have have registered a case and police are investigating into the incident," city DCP Praveen Kumar said.
Meanwhile, after apprehending the fall out of the incident with sequel to the previous rivalry between the victim`s family and Mayadhar Mohapatra, police are tight lipped, but have stepped up investigation.
Few villagers were rounded up by the police.
Mohapatra had alleged that he was recently threatened by Mayadhar Mohapatra and Muna Panda of the village of dire consequences.
"They had even threatened to eliminate my family," Mohapatra alleged.
Meanwhile, accused Muna Panda was absconding from the village, police said.