Violence erupted in Trilokpuri area of east Delhi on Tuesday as rival groups pelted each other with stones.
"The situation is tense," said a senior police officer.
The trouble spot appeared to be centred at Block 27, Trilokpuri near Mayur Vihar, sources said.
"We are assessing the situation and appeal to people to keep calm," said the police officer, adding announcements are being made to disperse the crowd and maintain peace.