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," he said.
The bodies were shifted to the district hospital for post-mortem, the SP said, adding that no arrest was made in this connection so far and the accused were being searched.
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