The incident took place this morning when a procession to commemorate the death anniversary of Hazrat Ali, the son-in-law of the Prophet, was being taken out in old city by the members of Shia community, they said.
As soon as the procession reached near Bhadeva telephone exchange in Bazar Khala locality some persons started pelting stones leading to a stampede-like situation.
Later, the situation went out of control when angry youths started pelting stones in retaliation and also set afire some shops and damaged dozens of vehicles parked alongside the road.
Senior officials have reached the spot and trying to control the situation, which is stated to be tense.
Shia Personal Law Board member Yasoob Abbas told PTI that a number of people including women and children were injured in the incident.
He demanded immediate action against those responsible for the episode.