A posse of police and Provincial Armed Constabulary (PAC) personnel has been deployed in the area, an official said.
Shubham Tewari, on his way home from school, was crossing the road when a speeding dumper, laden with construction material, hit him under the Koirana police station area, SP Sachindra said.
The boy died on the spot, the SP said, adding that infuriated over the accident, locals caught hold of the dumper driver and beat him up.
Those who indulged in arson and vandalism are being identified, the SP added.
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