The attack took place near Gokaram when he was returning after attending ‘Telangana Dhoom Dham’, a cultural programme demanding separate Telangana state, at Sangem in Valigonda mandal, about 120 km from here.
According to police, about 15 assailants in two cars chased Sambasivudu who was travelling in a car at around midnight. The attackers forced the leader's vehicle to stop and attacked him with swords, sickles and other sharp-edged weapons. He sustained 20 stab injuries. Three of his supporters injured when they tried to save him.
The 46-year-old succumbed to his injuries while being shifted to Hyderabad, police said.
After conducting autopsy at Gandhi Hospital, the body of Sambasivudu was shifted to his native village Dasireddygudem in Nalgonda for cremation.
His family members and Civil Liberty activists alleged that the police used its agent and former Maoist Nayeem to kill Sambasivudu.
The van in which the assailants chased Sambasivudu was traced on Monday in Choutuppal, a few kilometres from the spot. The van was stashed in bushes near the road.