One person was burned to death and at least two others were injured in fresh Hindu-Muslim clashes which erupted in volatile Gujarat, a senior police official said on Monday.
The violence broke out on Sunday in Ahmedabad, which bore the brunt of India's worst religious riots in a decade last year, after false rumours that Hindu militants had killed a Muslim builder, he said.
Police used tear gas to break up rival mobs and imposed an indefinite curfew in parts of the old quarter of Ahmedabad.
"A motorcyclist was attacked and set on fire along with his vehicle late on Sunday. His killing led to more clashes," P.S. Chaudhary, the police official, told Reuters.
"It was just a rumour that sparked the clashes. The Muslim builder was killed by miscreants from his own community.
"The city is now peaceful. Riot police are patrolling the affected areas," Chaudhary said.
There has been a rise in Hindu-Muslim clashes in Gujarat in recent weeks and analysts say it is likely to continue as both the communities still live in fear and mutual suspicion.
Three Muslims were killed early this month in Viramgam, west of Ahmedabad, in a dispute over a children's cricket match and at least four people were injured in clashes in Ahmedabad on Friday.
"There is no real pattern to this violence. The atmosphere in the state is still so vitiated, even a baseless rumour sparks clashes," said a police officer, who did not want to be named.
More than 1,000 people, mostly Muslims, were killed in Gujarat in a series of revenge attacks after a suspected Muslim mob torched a train burning alive 59 Hindu activists early last year.