Bhubaneswar, Dec 29 : The overall situation in Orissa's Khandamal District improved on Saturday with no violence reported from there.

Day curfew was lifted in Phulbani and Daringibadi towns following improvement in the law and order situation.

However, night curfew will remain in force for sometime, police said.

Meanwhile, the state government has set up a judicial commission, headed by Judge (Retired) Basudev Panigrahi to probe the communal violence in Khandamal District.

The government has placed the Circle Inspectors of Police (CI) of Tikabali and Phiringia, and Revenue Inspector (RI) of Khajuriapada under suspension.

The miscreants had torched the two police stations and had set the revenue office on fire. The CI of Phulbani Sadar was also transferred.

With the recovery of one more body on Saturday, the death toll in the communal violence in Kandhamal district has increased to three, officials said.

While one person was killed in police firing at Brahmanigaon village, two died in stone-pelting incidents in Barakhama village, sources said.

On Friday, Orissa Steel and Mines Minister Padmanabha Behera resigned owning "moral responsibility" for the communal violence.

Over a dozen churches and prayer houses in Khandamal District have been torched since Hindus and Christians clashed over Christmas celebrations on December 24.

The violence was sparked off on Monday when Vishwa Hindu Parishad activists led mobs burnt down churches.

The saffron activists were reportedly agitated following an attack on VHP leader Laxamanananda Saraswati, who led an anti-conversion movement. (ANI)