The incident occurred in Pahadi area when the two groups, one led by Ashu and the other by his rival Gani, clashed over some old disputes.
Members of Gani's gang opened fire, killing Hamid (30) and Abid (35), SP Rahul Prakash told PTI.
He said the deceased were Ashu's supporters.
"There was some dispute between the two over royalty of mining in the area. The matter is being probed to ascertain the cause," Circle Officer Kaman Rajpal Godara said.
"Gani contested Panchayat election against Ashu's daughter-in-law recently which she won and became Dholet Sarpanch. Earlier, Ashu's mother was the village Sarpanch," Prakash said.
Additional police force has been deployed in the area and efforts are on to nab those involved in firing. No arrest was made so far, Godara said.
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