Curfew was being relaxed in two stages from 7 AM to 11 AM in the old town areas and from 3 PM to 7 PM in the new city, Saharanpur District Magistrate Sandhya Tiwari said.
Large number of people gathered at the Idgah area and mosques in the city to offer prayers but many of them said they could not make preparations for Eid because of the law and order situation.
68 people have been arrested so far in connection with Saturday's violence, Tiwari said, adding minor incidents have been reported since yesterday and the situation was improving. Curfew had been relaxed yesterday to allow people to get their daily needs from the markets.
Curfew was clamped on Saturday in the wake of clashes between two communities over a land dispute in which three persons were killed and 33 injured.
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In Lucknow, Uttar Pradesh Chief Minister Akhilesh Yadav had said yesterday those behind the violent incidents would not be spared and stern action would be taken against them.
Asked about the plot of land over which clashes erupted, Yadav had said the matter is sub judice and action would be taken accordingly.
Home Minister Rajnath Singh had briefed Prime Minister Narendra Modi on Sunday on the situation in the Uttar Pradesh district.