Chinmoy Krishna Das, a Hindu leader associated with the International Society for Krishna Consciousness (ISKCON), was arrested from Dhaka airport on Monday on several charges, including sedition.
His arrest sparked protests by his supporters in both the capital Dhaka and Chittagong city.
"A Muslim lawyer defending Das was killed amid protests outside the court (in Chittagong)," said police officer Liaquat Ali.
A probe has been ordered into the alleged killing, the caretaker government said in a statement, adding that Chief Adviser Muhammad Yunus had directed law enforcement agencies to step up security in the port city.
"The interim government is committed to ensuring and upholding communal harmony in Bangladesh at any cost," the government said.
Das faces sedition charges filed in October after leading a large rally in Chittagong, in which he was accused of disrespecting Bangladesh’s national flag and was denied bail by a court in Chittagong on Tuesday.
'RAMPAGE'
When Das was being escorted back to prison from court, more than 2,000 supporters surrounded the van, blocking it for over two hours, Chittagong Metropolitan Police Commissioner Hasib Aziz, said.
"They went on a rampage, throwing bricks at us. To disperse the crowd, we had to fire tear gas. No one was seriously injured, but one of our constables was hurt," Aziz said.
India condemned the arrest of Das, saying in a sternly worded statement that the perpetrators of documented vandalism and arson against minorities as well as those who desecrated deities remained at large.
Hindu-majority India has strong cultural and business ties with its neighbour and Prime Minister Narendra Modi's government has expressed concern over a spate of attacks on Hindus.
"It is unfortunate that, while the perpetrators of these incidents remain at large, charges should be pressed against a religious leader presenting legitimate demands through peaceful gatherings," the Indian foreign ministry statement said.
Bangladesh's foreign ministry, responding to India, said the government does not interfere in the judiciary's work, and the matter was being dealt with by the court of law.
"The Government of Bangladesh is also committed to upholding communal harmony in the country," the ministry said.
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