Violence erupted Sunday morning in Tauru town, some 40 km from Gurgaon city, after a truck mowed down two men on a bike, killing one of them on the spot, police said.
Tension gripped the Meo (Muslim) dominated area in Mewat district after the accident.
"Danveer Singh, 22, died on the spot while the other was critically injured," a senior police officer told IANS.
"The driver and helper of the truck, from Meo community, were badly thrashed by the mob. A rumour spread that duo were beaten to death and people from a community started looting shops in the main market," he said.
The markets were closed after the violence. Most of the access routes to Tauru from Mewat were blocked by the people from a community.
Media persons were also not allowed to reach the spot.
"People pelted stones and destroyed shops and business outlets in the market. Police had to open fire in the air to control the mob," the police officer added.
Mewat Deputy Commissioner R.C. Verma imposed prohibitory orders under Section 144 CrPC, banning any gathering of five or more people, and also clamped curfew on the area.
Additional police force was called. Many people could not get out of their houses, shops and offices because of the violence.
"The situation in and around Tauru town was tense but under control," another officer who did not wish to named told IANS.