The clashes occurred due to differences over who can pray inside the Hamidia Hospital Complex. So far two incidents of stone pelting took place.
Police resorted to teargas and lathi charges to disperse the unruly mobs that gathered.
The issue is related to the discovery of minarets inside the Hamidia Hospital complex during digging work.
Muslims in the region said it was a mosque and wanted to pray there. However, the hospital said they were still trying to find out what was being dug out.
Hospital authorities then also denied permission to Hindus from visiting a temple inside the hospital.
The first incident was a clash between VHP supporters who were attempting to enter the temple to pray, and a group of Muslims who gathered there for iftar.
The second incident happened when a group of Muslims left a mosque after offering Namaaz.
In both cases police used force to disperse crowds. People were injured, businesses were closed and arson was also committed.
Arvind Saxena, superintendent of police (north), Bhopal said, "The situation is now under control. There was heavy stone pelting from both sides and we had to use teargas and cane-charge the mobs. Heavy force has been deployed to maintain peace."
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