Rourkela, Apr 28: Panic gripped villages bordering Jharkhand in Orissa's Sundargarh district in the wake of the encounter between MCC activists and security personnel in Saranda forest in the neighbouring state. The encounter, following which seven MCC activists, including three women were arrested, took place yesterday in west Singhbhum district of Jharkhand, police DIG, Pradip Kapoor said.

Security personnel had kept the inter-state border sealed to ensure there was no infiltration, Kapoor said.

The encounter was the result of a joint combing operation being undertaken by the Orissa special armed police, CRPF and Jharkhand police, he said.

Officials have admitted that MCC cadres had been frequently entering Orissa from across the border and recently they looted explosives from a truck in Sundargarh district.

Bureau Report