Raising the issue during Zero Hour, Congress leader and former Speaker Kuldeep Sharma said members of the Dalit community from Sagga village have been forced to leave their homes and were now sitting on protest in Karnal.
Heated exchanges ensued as Health Minister Anil Vij attacked the Congress, saying it has no moral standing to raise the issue.
He was referring to the Mirchpur incident, in which two Dalits were burnt to death and said that too had happened during Congress rule.
Finance Minister Capt Abhimanyu and BJP's state unit president Subhash Barala too joined the exchanges with Sharma.
Khattar then rose and said that Minister of State for Social Justice and Empowerment Krishan Kumar Bedi and MLA Bhagwan Dass Kabirpanthi have been sent to pacify both communities and ease tension in the village.
The state government was making efforts to normalise the situation in the village and persuade 100-125 members who had left the village to return, he added.
"But when members belonging to one community (Dalit) wanted to perform the ritual, they were stopped by members of another community, which made the situation tense," he said.
Khattar said the "'Ghurchari' ritual was performed in the presence of police, but it was opposed by members of another community and they resorted to pelting of stones, which caused injuries to some police personnel and several others."
The police has registered a case "and another case was registered under the provisions of the SC/ST Act, he said.
"The government is trying to restore normalcy and resolve this issue. But in case it's not resolved, further action would be taken as per the FIR lodged in this case. The Deputy Commissioner, Karnal had also constituted a committee to resolve the issue," he added.
After Khattar spoke, BJP members raised objection against some words that had been used by Congress leader Sharma in the Assembly.
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