An official release said that the last rites of Prashant Sharma, the deceased, were conducted and ex-gratia of Rs one lakh was given to his kin.
Collector Akash Tripathi, DIG Rakesh Gupta, SP Abid Khan and other senior officials visited the town.
Tension had gripped Pithampur industrial area near Indore after the murder.
Sharma had gone to the cricket ground in Vishwas Nagar area last evening to pacify a group of children who had a fight over some issue while playing, Kishanganj police station in-charge, Ramesh Chandra Bhaskare told reporters here.
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Sharma was rushed to Mhow Civil Hospital where he succumbed to his injuries, Bhaskare said.
A large number of RSS activists also gathered at the hospital and later allegedly ransacked the accused's shop and set it ablaze along with other houses, he said.
Soon, heavy police force from adjoining areas was deployed in the tense area and police had to open fire to control the situation, he said.