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The government deployed heavily-armed police commandos in the hill station region, which is popular with tourists after rioters defied an overnight curfew and went on the rampage.
All exams scheduled for Saturday by the University of Kashmir have been cancelled.
The curfew imposed in the remaining parts of Madhya Pradesh was lifted completely on Monday, following improvement in the situation.
Demanding an apology from Gandhi, students from varsities across the national capital shouted slogans such as hormonal outburst hokey rahega.
The movement of people was allowed on the Srinagar-Jammu national highway passing through south Kashmir.
Suresh Rana, accused in Muzaffarnagar riots and party candidate from Thana Bhawan constituency in Shamli district, made the remarks at a gathering on Saturday, evoking criticism from opposition.
As many as three state police personnel were killed in a militant ambush while 14 others got injured in the aftermath of the formation of seven new revenue districts.