The mishap occurred last night when Aijaz Ahmed (27), along with his five-year-old daughter Shifa and aunt Shahida Bano (41) were returning home after buying medicines, they said.
The speeding tractor hit their bike following which the three fell on the ground, police said, adding, in an attempt to escape, the driver ran over Aijaz and Shahida.
The accused, who fled from the spot, has been arrested and further investigation is on, they said.