CRPF personnel opened fire after a mob attacked their vehicle involved in a road accident on the banks of Dal Lake in Srinagar on Sunday.
The CRPF vehicle hit a private car near SK International Convention Complex injuring its driver, official sources said.
A group of people soon assembled at the scene and in a fit of rage smashed the windowpanes of the CRPF vehicle to protest the alleged rash driving by its driver, the sources said.
They said the CRPF personnel, who had got down from the vehicle, fired a few shots in the air to disperse the mob. However, no one was injured in the firing, the sources said.
Police rushed to the spot and pacified the crowd with an assurance that legal action would be taken against the erring driver.
The injured car driver was shifted to hospital and a case was registered against the CRPF driver, the sources said, adding the traffic on the road was briefly suspended due to the trouble.