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The incident took place at Koteshwara near here on Friday when the two groups had exchanged heated arguments over a local temple fair. It is said one group objected while members of another outfit were putting up banners.
The youth who has been critically injured has been identified as Abhishek (27). He has sustained head injuries and is admitted to Manipal Hospital. The other two injured persons Adarsh and Sridhar Naik are undergoing treatment at a hospital in Kundapur.
A case stands registered at Kundapur police station.