The Acharya Harihar Regional Cancer Research Centre has been sealed for sanitisation after the cases were reported, they said.
Cuttack District Collector Bhabani Shankar Chaini told reporters that the matter was being investigated, and appropriate action will be taken if any lapses were found.
Cancer patients who were getting treated at the hospital alleged negligence on the part of the authorities as the reason behind such an outbreak at the facility.
"It is for the negligent and casual approach of the cancer hospital authorities that the virus from one patient infected the entire hospital," a patient claimed.
Police said some patients at the cancer hospital found to be positive for COVID-19 created a ruckus while they were being shifted to a COVID hospital in Bhubaneswar by bus on Saturday night.
Cuttack's Deputy Commissioner of Police Akhileswar Singh said forces were rushed to the spot from Mangalabag and the situation was brought under control.
Police then piloted the vehicle carrying the patients to the COVID hospital in Bhubaneswar, he added.
The city has so far reported 190 cases of COVID-19, of which, 144 have been detected in the last three days and a majority of them were from the cancer hospital, officials said.
Civic authorities have declared a complete shutdown of the municipal area till Wednesday for contact-tracing, and sources said the shutdown could be further extended if the situation did not improve. CORR SKN SOM IJT