Two groups fought pitched battles, fired at each other and burnt several vehicles, they said. At least five policemen were injured in the violence.
Traffic on the national highway connecting Ambala was thrown out of gear as protesters went on a rampage.
District officials said curfew was clamped in Saharanpur city, as over two dozen shops and vehicles were gutted.
A dozen people were arrested for inciting violence over the land dispute.
Sources said the brawl began with a verbal spat over a gurdwara and some construction taking place adjacent to it.
Sources in the home department said the tense situation was under control.