The argument started between a student from Bihar and another from Kashmir on Tuesday evening.
The student from Bihar allegedly called the student from Kashmir a "terrorist", leading to the altercation and brawl in which more students from both sides joined in.
The institute's director, Aman Aggarwal today said the issue stands resolved and the student who called a Kashmiri student a terrorist, and thereby sparked the ruckus, has been rusticated, along with five others.
Kalimulla, a second year BTech student who is from Kashmir, had told reporters in Jhajjar that he was throwing water on his friends and joking around with them when a third year BBA student from Bihar who was sitting close by, also got wet.
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The situation soon took ugly turn and the student allegedly abused the Kashmiri student calling him a "terrorist". Soon more students from Bihar and UP joined them and a brawl broke out between the two sides.
Seventy students from J&K are enrolled at the college.
Yesterday, the Kashmiri students had staged a demonstration and hunger strike on the campus demanding rustication of the students who had allegedly abused them and imposition of a penalty on them.