They had refused to cremate the body of Singh, who was gunned down by the police on June 24, until their demand for a CBI probe into the encounter was met.
"The family members were served a notice today to conduct the funeral. The IG and other officers convinced the family members to cremate the body and they agreed," ADG (Law and Order) N R K Reddy told PTI.
"The curfew which was imposed last night in Anandpal's native Sanvrad village was relaxed in the evening and the funeral procession has begun," he said.
The curfew was imposed after one person was killed and 32 people including 24 policemen were injured in clashes between the police and members of the Rajput community, who are demanding a CBI probe into the gangster's death.
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IG Malini Agrawal said that close to 200 people were arrested in connection with last night's violence.
They torched the vehicle and injured the SP and other policemen.
"The miscreants also snatched the weapon of the SP's guard and efforts are on to recover it," she said, adding the situation was under control.
Anandpal, who was carrying a cash reward of Rs 5 lakh on his head, was killed in the encounter on the night of June 24 at Malasar village in Churu district.
He was on the run after escaping from police custody while being taken back to Ajmer prison from a court in Nagaur district in 2015. He had more than 30 cases of murder, extortion and other crimes registered against him.