The incident took place yesterday when around 12 dacoits signalled the bus to stop on Muzaffarnagar-Charthawal Road near Haibatpur village, following which they gunned down the driver when he did not stop the vehicle, police said.
The dacoits also looted cash worth thousands of rupees and ornaments from the passengers, they said.
The driver has been identified as 48-year-old Sukhram, police said, adding, the bus carrying 47 pilgrims, including 12 women, was coming from Rajasthan.
No arrest has been made so far in this connection, they said, adding, search operation to nab the accused has been started.
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