Locals alleged that the procession caused traffic jams in the market area and hindrances into their business.
The 'Mahapanchayat' was organised in order to ensure that the procession takes an alternate route instead of passing through town market.
However, timely intervention by the police ensured that the tension was nipped in the bud.
"The route of the procession has been diverted with mutual consent of both the communities.
We will not let peace and harmony disrupted in the area at any cost, he said.
Tensions had erupted in Trilokpuri on Diwali after a drunken brawl near a religious structure.
More than 70 people including 56 policemen were injured during the riots, which had led to imposition of prohibitory orders in the area which still continue.
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