The curfew imposed in Haryana's Tauru town following communal violence after a road accident continued for the third day Tuesday but was relaxed for three hours, officials said.
The curfew was relaxed from 8 a.m. to 11 a.m., and no untoward incident was reported during the relaxation period.
However, majority of shops and business outlets in Tauru, home to over 40,000 people, remained closed.
The curfew was also relaxed Monday from 4 to 7 p.m.
It was imposed after violence erupted Sunday in in the Mewat district town, some 40 km from Gurgaon, after a truck mowed down two men on a motorbike, killing one of them on the spot.
The truck driver and his assistant, from the Meo community, were thrashed by a mob after the accident.
A rumour spread that the duo were beaten to death and people of a community from nearby villages pelted stones and damaged business outlets.
Police fired blanks to control the mob, but nearly a dozen people, including some policemen, were injured in the clash.
Police have registered 30 complaints from the two communities over the violence, but no one has been arrested.
Meanwhile, the administration's attempt to form a peace committee failed as traders demanded that the weapons used by the mob in attacking the market must be seized first.
"We will keep our shops shut even after curfew is lifted if the large number of weapons used by the mob are not seized," the trader's body told officials.
"The curfew will continue until complete normalcy is restored," a senior officer told IANS.
The administration appealed to people to remain calm, maintain peace and avoid rumour-mongering.
Around 1,500 personnel from the Rapid Action Force (RAF), Central Reserve Police Force (CRPF), Border Security Force (BSF) and Haryana Police have been deployed in the area.