The body, wrapped in a polythene sheet, was carried through a market. The trolley belonged to the local municipality, officials said.
A photograph of the incident at Tudigadia near Soro town went viral on social media, leading to a public outcry, the officials said, adding that an investigation has been ordered.
"We would probe the incident to find out how the body was being carried in the garbage trolley as alleged. The incident triggered a protest," Soro Municipality Executive Officer Priyabrat Padhi said.
The unidentified destitute woman, almost unconscious, had been lying by the roadside at Tudigadia and local people took her to a hospital on June 1.
Soro police station officers then handed over the body to the Soro Municipality which subsequently decided to dispose it of, they said.
The body was handed over to an agency hired by the municipality for its disposal. The agency personnel carried the body in a garbage trolley, the officials said.
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