"There was a sudden crowd surge of devotees for having a glimpse of the Hindu deities during which a few people either fainted, felt suffocated or complained of breathlessness," said Siddharth Shankar Swain, the top government official in Puri.
Swain said 15 people were rushed to a local government hospital, where three people were pronounced dead.
Autopsies are planned to determine the exact causes of death. The other 12 people have been discharged.Â
Tens of thousands of devotees gathered in the coastal town early on Sunday at Shree Gundicha Temple, near the famous Jagannatha Temple, to catch a glimpse of the deities onboard three chariots, Swain said.
The coastal temple town of Puri comes alive each year with the grand "Rath Yatra", or chariot festival, in one of the world's oldest and largest religious processions.
The centuries-old festival involves Hindu deities being taken out of the temple and driven in colourfully decorated chariots.
The festival is one of Hinduism's most revered events and draws hundreds of thousands of devotees annually from across India and the world.
Naveen Patnaik, a former top elected official of Odisha state where Puri is located, said in a social media post that "no government machinery (was) present to manage the surging crowds, highlighting a shocking lapse in duty".
"While I refrain from accusing the government of criminal negligence, their blatant callousness has undeniably contributed to this tragedy," he said.
Patnaik called the incident a "stampede" that "exposes the government's glaring incompetence in ensuring a peaceful festival for devotees".
In a social media post, Mohan Charan Majhi, the top elected official of Odisha, apologised for the incident, saying it occurred "due to stampede among devotees" amid excitement to have a glimpse of the deities.
Majhi said the security negligence would be investigated immediately.
"This negligence is inexcusable," he said, adding that concrete action will be taken against the people involved.
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