Two policemen were injured in the brickbatting by the mob.
The incident took place this evening when a 'Daggemaar' bus ran over Bhagvan Devi, who died on the spot, following which a mob set the vehicle on fire, brickbatted and blocked the highway, they said.
The locals alleged that these buses run illegally in the area.
Initially the mob chased away the police personnel who reached the spot to remove the blocked, police said.
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Police resorted to lathi charge to disperse the mob.
"Situation has been brought under control and road blockade has been cleared, the protesters dispersed after the police and PAC used mild force," ASP Kunvar Anupam Singh said.
The people involved in the arson, brick bating and the blockade are being identified and case will be registered against hundreds of the accused," he said.
It is the second fatal accident by 'Daggemaar bus' within 17 hours as four pilgrims were killed when the SUV they were travelling in was hit head on by a speeding mini bus.