The authorities re-imposed the curfew in Budgam district of central Kashmir after the woman, who received serious head injuries in the July 23 incident, died here on Saturday.
Fatima, 57, succumbed at Sher-I-Kashmir Institute of Medical Sciences (SKIMS) hospital, Soura, on Saturday morning, the police said.
On July 23, clashes were witnessed between two sects in Galwanpora, Reshipora and Sabdan areas of the district following dispute over construction of a village road, leaving several injured.
Curfew was re-imposed after two days of calm on Saturday following the death of the woman.
The body was handed over to the family, but tension gripped the area as residents of Dadina village refused to carry out the funeral demanding a judicial inquiry into the circumstances that led to her death.
Although curfew was relaxed for few hours on Friday night, the restrictions were strictly imposed on Saturday as authorities apprehended escalation of tension during the funeral of the deceased woman. Woman's family and relatives alleged that it was during a clash between the two groups that Fatima and a group of other women, who were nearly 500 metres away from the spot, were allegedly assaulted and roughed up by a police party.
Whereas police sources said the deceased was injured when a mob, comprising women armed with knives and swords from Dadina village in Budgam attacked police personnel deployed for curbing sectarian clashes in the district.
Fatima, according to sources, was injured during the lathi charge.
The police have lodged an FIR in the case. They have, however, refused to comment on the incident officially.
Meanwhile, separatist leaders have condemned the issue. In a statement, Mirwaiz Umar Farooq has criticised the government for using force to quell protests. He expressed solidarity with the family of the deceased.