People immediately grabbed Khan, thrashed him and handed over to the police.
Police said Vaishnav was a regular distributor of newspapers in Shankar Vihar Colony.
He also distributed newspapers at the residence of Khan who did not pay the newspaper bill for several months.
Meanwhile, one SHO was suspended on Thursday evening for ordering cane-charge on the people who had taken out a silent protest against the incident.
Police also attacked the media and smashed the camera of a photographer.
Former BJP MLAs Kailash Verma and Kanhaiyalal Meena had also visited the venue and participated in the protest.
However, after the suspension of SHO Virendra Singh, BJP leaders and anguished people ended the dharna on being assured by the police and administration that the matter would be handled in a transparent manner.
Meanwhile, a heavy police deployment was made in the city to avoid any untoward incident.