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Curfew was imposed in the town on Wednesday morning to avoid more flare-ups.
Trouble erupted in the Rohidaswada area of Kalyan after the body of a Bajrang Dal activist was found with stab wounds.
A mob went on a stone pelting and stabbing spree and set ablaze houses and commercial establishments, prompting the police to open fire.
One person was stabbed during the clashes, while a female relative of the deceased Bajrang Dal activist died of shock, the police said.
The situation is "tense but under control", they said.
The police had arrested 65 people in connection with the violence, Minister of State for Home Kripashankar Singh said.
Meanwhile, Shiv Sena leaders from the district have rushed back from Shirdi, abandoning the ongoing Maha Shivir at the temple town.
With inputs from Vijay Singh
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