Karnataka Chief Minister Siddaramaiah announced compensation of Rs 10 lakh for the family of vendor Basheer, who succumbed to his injuries on Sunday.
Basheer Ahmed who ran a food stall in Mangaluru was attacked in Surathkal by four people on Wednesday.
The incident came to light the same day when Bajrang Dal worker Deepak Rao was murdered by four unidentified persons.
Basheer was allegedly attacked in retaliation for the murder of Rao.
Police have arrested four people in connection with Basheer's murder.
Rao and Basheer were attacked on Wednesday, while Rao died the same day; Basheer succumbed to his injuries today.
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Siddaramaiah on Thursday had condemned Rao's murder, asking the citizens to not be swayed by forces that are spreading "mischievous propaganda" and trying to divide the society on communal lines.
It is alleged that Rao, a resident of Katipalla Kaikamba, was riding his motorbike when he was waylaid by a car whose individuals then attacked him.
Before Deepak could escape, they attacked him with weapons and fled in a car. He was later declared brought dead by doctors in a private hospital.
The state government has, however, deployed additional police to maintain law and order and ensure peace, as the BJP and Bajrang Dal called for a day-long shutdown in the coastal district today in protest against the murder.