Bihar Chief Minister Nitish Kumar has ordered an inquiry into the incident that took place at Asadhi village under the Tajpur police station.
The police said violence broke out during a demonstration by villagers at an highway.
They were protesting against the killing of a chemist by unidentified assailants two days ago, Samastipur Superintendent of Police (SP) Deepak Ranjan said.
They torched as many as eight police vehicles and also tried to set fire to the police station and attack the vehicle of a deputy superintendent, he said.
"In the melee, some police personnel perhaps could not aim their guns properly in the air and as a result of which two of the demonstrators suffered bullet injuries," Ranjan said.
One of them died on the spot and the other was taken to a hospital. Three policemen and an administrative official were also injured, he said.
The chief minister has called the incident "sad" and directed Tirhut divisional commissioner and the deputy inspector general of police (Tirhut Range) to visit the site and submit a report, an official release said here.
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