The violence started at a hotel over a trivial matter and spread to Machibazar and Madhavpura areas of the city, they said, adding police used water cannons to disperse the mob.
Guardian minister for Dhule district Suresh Shetty said around 50 people including some policemen were injured in the clashes. The situation there is tense but under control.
When contacted, Shiv Sena MLA from Dhule Sharad Patil told PTI that a police sub-inspector and an assistant police inspector were among those injured.
35-year-old youth Kailash Waghare was seriously injured in the incident after being hit by a bullet and admitted to a local hospital, he said.