Singh said the reports about the deaths emanated due to "miscommunication" between the police and the medical staff in a hospital where those injured in the firing and stone pelting were admitted.
Ratan had said on Thursday night that the warring groups had opened fire on each other leaving three persons dead and six with bullet wounds.
The clashes took place following a dispute over construction of a wall of a building in a locality dominated by the minority community.
The IGP said the situation in the town was under control and returning to normal. Personnel of the paramilitary Provincial Armed Constabulary have been deployed in the affected areas, he said, adding that 14 people belonging to both the groups have been detained on charges of arson and violence.
At least 30 people were injured in the violence on Thursday night during which one police jeep and two other vehicles were set on fire and three buses damaged.