The deceased persons have been identified as Ashok Kumar, a former BSF personnel, and Fauji. Both worked as personal security officers (PSO) for two different property dealers in southwest Delhi.
The two were guests at a party last night at Pehelwan's farmhouse, where the former councillor's PSO lives, said a senior police official.
All guests in the party were drunk when a heated argument broke out among them, during which one Joginder, also a PSO, pulled out a gun and allegedly fired at Kumar and Fauji.
A police team was rushed there and during the initial phase of the investigation, it appeared that both the victims worked as PSO for Pehelwan.
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Further investigation revealed their identities and that of the property dealers they worked for.
When people were questioned, the sequence of events became clear and the accused, Joginder, a resident of Bahadurgarh in Haryana, was arrested for murder, police added.
In March last year, Pehelwan's brother Bharat Singh, who was a former MLA, was shot dead by assailants, an incident which was fallout of an old gangwar in the area.
While deceased Ashok Kumar, who had taken voluntary retirement from BSF, was a native of UP's Etah, details about Fauji were being ascertained.