"Two people are reported dead in St George Hospital (in south Mumbai) and the over 50 injured are being treated in hospitals here," an official from the disaster management cell told IANS.
Of the 52 injured, 41 are policemen, the official added.
Those killed have been identified as Mohammed Umar, 22, and Altaf Shaikh, 18.
A photographer from Sakal Times, Prashant Sawant, 50, was also seriously injured in the violence along with at least three other photo journalists.
Terming the situation "delicate", the city police chief said that a red alert has been issued.
"The holy month of Ramzan is on. Considering there were serial blasts in Pune recently, and that the Independence Day is also coming up, we have issued a red alert in the city until the situation is entirely under control," Mumbai Police Commissioner Arup Patnaik told media persons here.
Image: People gather near burnt vehicles after clashes between police and Muslim protestors in Mumbai, India, Saturday, Aug. 11, 2012. (AP)