Police said the conductor of the private bus had asked the three for their fare and got angry when they said they did not have the money. At this, he allegedly pushed out the three students near Pilkhana and one of them came under the front wheels.
The boy was rushed to hospital, where doctors declared him brought dead. The other two boys were injured.
The incident angered the locals who damaged the bus and tried to set fire to the bus.
The police, however, stepped in and averted it.
The situation was later brought under control, the police said adding the bus driver and the conductor were absconding.