Police mistook a Border Security Force jawan for a dacoit and shot him dead, triggering violent protests in Porsa area in Morena district of Madhya Pradesh on Saturday.
Two people were killed and four injured when police opened fire to quell the violence.
Curfew was imposed in the area and the nearby Ambah town and a magisterial probe was ordered.
Tension gripped Porsa and Ambah with demonstrators attacking police stations and vehicles to protest against the killing of Shobram Singh Tomar of Kiroich village, who had come on leave from Jammu and Kashmir's Udhampur district on the occasion of raksha bandhan, police said.