The clash took place yesterday at Bakarganj area after some miscreants, allegedly sent by a local property dealer, created ruckus and set the houses on fire, DIG Amitabh Yash said.
Six animals were also charred to death in the incident, he said.
The goons were sent allegedly to get the settlements evacuated, Yash said.
He said some villagers and a policeman were also injured after angry mob pelted stones at the police team rushed to the site.
Cases were registered against 14 people, including the accused property dealer Rajjan Bhatia who was at large, the DIG said.