The incident took place this afternoon when the accused mercilessly beat up Maina Devi (60) and her family members after they refused to hand over their property to them, they said.
Later, they poured kerosene oil on the woman and set her on fire. However, she was admitted to hospital with 30-35 per cent burn injuries, they said.
Her condition was stated to be stable now, police said.
The victim's kins alleged that some policemen were also involved in the incident, a charge denied by the authorities.