The teenager was abducted from her home in Jharkhand state on Thursday and raped in a forest while her family was away at a wedding, police said.
It is reported that the girl was gang raped, after which she was released, however, after she complained of rape to the police, they came to her home and burned her alive.
Some 40,000 rape cases were reported in India in 2016, but campaigners though say the real number is higher, with victims wary of making complaints because of social stigma.
The incident took place in the Naxal-affected Chatra district of the state.
Enraged over the panchayat's decision, all the accused men went to the house of the girl and thrashed the family members and burnt her to death.
The officer said that when the victim said she would inform her family members about the incident, the accused dragged her to the bathroom, poured kerosene on her and set her on fire.
Indian authorities have faced renewed pressure to act over sexual assault since the recent gang rape and murder of an eight-year-old Muslim girl by a group of Hindus in Jammu and Kashmir state.
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Ram said they had arrested 14 men over the case so far although the main suspect was still on the run.
In her opinion, the village elders can be expected to be released soon, since the police only usually take statements from them without attempting to lay any charges.
Some 578 rape cases were reported in Delhi up to April 15, against 563 in 2017 in the same period. The victim's family have registered the case at the Ikthori police station.
Jharkhand Chief Minister Raghubar Das condemned the horrific incident calling it "barbaric" and declaring that such behavior has no place in a "civilized society".
The latest victim, a 17-year-old girl, was in the hospital Monday afternoon after suffering burns to 70% of her body, according to Shailendra Prasad Barnwal, superintendent of police in Jharkhand's Pakur district.
A frightening spike of sex attacks on women and children triggered the troubled country to adopt the death penalty for rapists and paedophiles.