Nawada District Magistrate Kaushal Kumar said that as soon as the news spread, a protest erupted, leading to violent clashes between two communities.
Angry mobs damaged vehicles, torched shops and pelted stones at the police.
However, the situation was soon brought under control, Kumar added.
Additional security forces have been deployed in the town to maintain law and order.
The Nawada parliamentary constituency is represented by Union Minister Giriraj Singh, who is known to be a vocal champion of Hinduvta politics.
Communal tension had erupted in Nawada last year and also in 2013.
In the past week, communal tension that first started in Aurangabad district during Ram Navami processions, spread to Samastipur, Munger, Nalanda, Sheikhpura and Gaya districts.
The opposition Rashtriya Janata Dal (RJD) has attacked Chief Minister Nitish Kumar for failing to handle he situation.
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