"There was some land dispute between two groups during which one group tried usurping it by felling trees yesterday," they said.
Sudama Shukla, claimant from the second group, was attacked by the rival group members when he reached the spot. The attackers set his daughter on fire when she tried to rescue him, police said.
The girl was rescued by her mother, who admitted her to the district hospital.
Doctors said the victim sustained 45 per cent burn injuries, but was out of danger.
Police said that three accused Umesh Chandra Shukla, Suresh and Virendra have been arrested.
The dispute was related to possession of land, Deputy Superintendent of Police Kalwari Singh said, adding that remaining accused would be arrested within 24 hours.