Clashes broke out between members of two communities during Dussehra in Khargone with police cane-charging the rioters and lobbing teargas shells to control the situation in the town, where indefinite curfew has been clamped.
Four persons were injured and nearly 100 have been rounded up for their alleged involvemnet in the violence, police said.
The incident took place last night when a large number of people belonging to a particular community were returning to their homes after taking part in Dussehra festivities.
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As the violence spread, District Collector Neeraj Dube imposed indefinite curfew in the town late last night.
"The situation is under control now," Dube told PTI.
"We have rounded up nearly 100 people after they indulged in stone-pelting and arson at five places in the city causing injuries to four persons," Khargone SP Amit Singh said.
Khargone is about 300 km from state capital Bhopal.
Additional security forces have been requisitioned from neighbouring district and deployed in the city to control the situation.
Police is reviewing CCTV footages to identify those who indulged in the violence and has launched a drive to nab them, the SP said.
A search operation was also on as a part of which stones, swords and petrol bombs were recovered from the houses of a number of people in the disturbed areas, police said.
The injured persons were admitted in the district hospital, the Collector said.