Pushpa Sahni, had allegedly slapped the eight-year-old son of Ambika Sahni, for harassing her daughter on October 27.
A panchayat was called, but it failed to sort out the matter, following which Ambika decided to teach Pushpa a lesson, police said.
Holding a grudge against the woman, Ambika allegedly tied Pushpa to a cot and set her ablaze, they said, adding that village pradhan Harikesh Yadav also helped the accused.
The district hospital doctor, who is attending upon the victim, said she suffered serious burns and chances of her survival were remote.
An FIR against Ambika and Gram Pradhan Harikesh Yadav have been lodged and further investigations are on, he added.