The body of the labourer, Ravi, with stab injuries and his head crushed with a stone, was found in a park near Town Hall in Chandhi Chowk on August 4, DCP (North) Jatin Narwal said.
Based on an eyewitness account and other inputs, Rajender Kancha (26) was arrested on Monday. He led police to the recovery of the stone and knife used in killing the labourer, the officer said.
He also provided information about his accomplice, following which Gaurav (25) was arrested from Fatehpuri the next day, the DCP said, adding the Aadhaar card of the victim was recovered from him.
They stabbed him and then crushed his head with a stone, he said.
Further investigation is underway and a hunt is on to nab Ajay, the officer said.