The two groups, both from minority community, armed with weapons, clashed with each other this morning, and fired at each other, killing a 38-year-old man on the spot, police said.
Eight others were injured in the clash and condition of two is critical, police said.
Both the groups had been claiming their right over the plot of land near the mosque for a long time.
Additional policemen have been deployed in the area to maintain law and order, he added.