Senior Superintendent of Police (SSP) Jagdish Sharma said a clash broke out between family members of Rashid and Wajid following a quarrel among their children.
Both the groups used illegal firearms in the clash in which Mahmuda, wife of Wajid, was killed, he said.
Three persons, including a woman, were injured in the incident, Sharma said, adding they were undergoing treatment at hospital.
Mahmuda's body has been sent for post-mortem and the matter was being investigated, the SSP said.