Following is from http://www.state.gov/g/drl/rls/irf/2009/127365.htm.

In Kandhamal, Orissa State, individuals affiliated with left-wing Maoist extremists killed Hindu religious leader Swami Laxmanananda Saraswati and four Vishwa Hindu Parishad (VHP) workers on August 23, 2008. Although ultraleft Maoists claimed responsibility, the murders exacerbated underlying socio-economic tensions between the dalits and the tribals and unleashed a wave of revenge killings, assaults, and property destruction. According to widely accepted government statistics, 40 persons died and 134 were injured; most of the victims were Christians. The large-scale violence, which included the August 25 alleged rape of a Christian nun, attracted worldwide media attention. The central Government sent 39 companies of paramilitary forces to restore peace and security. State authorities established 18 emergency camps to house displaced persons, worked with NGOs to deliver assistance and relief to victims, and allocated funds to compensate next of kin and repair damaged houses, businesses, and places of worship. The police arrested 1,200 persons and registered more than 1,000 criminal cases. On April 21, 2009, police arrested Maoist leader P. Rama Rao in connection with Saraswati’s murder. According to several independent accounts, an estimated 3,200 refugees remained in relief camps, down from 24,000 in the immediate aftermath of the violence.

In March 2009 Orissa’s ruling party, Biju Janata Dal, terminated its 11-year alliance with its coalition partner, the BJP, reportedly in part over differences in responding to the Kandhamal violence. The state government, supplemented by central police, ensured that all communities in Kandhamal were able to freely and fairly exercise their franchise in April 2009 state and parliamentary elections. Since the reelection of the Biju Janata Dal Party, without its former coalition partner, the state government has worked with the central government to rebuild communities in Kandhamal both through infrastructure improvements and peace councils with various stakeholders. In June 2009 the central Government disbursed $ 300,000 (Rs. 14,648,437) compensation to the next of kin of 35 Kandhamal riot victims.

A part that is not mentioned in the report is that in the 2009 April elections the BJP party which was accused of playing a role in the violence in Orissa was decimated across the state. Out of 147 state level seats, their number reduced from 32 to 6 and in the national level MP (member of parliament) seats their number in Orissa (total seats 21) reduced from 7 to ZERO. The other party that was in power in Orissa, BJD, severed its coalition with BJP before the elections  and went on to win the elections with a larger number of seats than before.