The situation in Nagaland's commercial hub Dimapur was slowly returning to normal on Friday even though section 144 continues to be in force in and around the town.
Tension had gripped Dimapur Thursday after a mob broke into the Central jail in the town, killed a rape accused and hung his body at Clock Tower.
The state government has already ordered a high level inquiry into the incident.
"Security arrangements have been intensified in and around the town. The situation is under control now," said a senior district administration official.
He said that a youth, who received bullet injuries during the police firing Thursday, died at a local hospital.
The condition of three other youths, who also received bullet injuries in the firing, remains critical.
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The Dimapur Muslim Council said the situation is returning to normal with no incidents of backlash reported from anywhere.
"We have formed peace committees in different localities and efforts are on to ensure that the incident does not lead to communal clashes," said A. Rahman, working president of the council.
Meanwhile, Assam Chief Minister Tarun Gogoi condemned the killing of the youth and termed the incident 'barbaric, heinous and inhuman'.
"The manner in which the youth was dragged out of police custody and killed brutally by a mob on the streets is highly condemnable," said Gogoi in a statement issued Friday while adding that no one could take the law unto their hands and stern action must be taken against those involved in the crime.
"The crime committed by the youth is equally condemnable. But he should have been tried as per law," Gogoi said.