Pappu Yadav and his servant Bablu Murmu were killed in the state capital on July 10.
Acting on a tip-off, police raided a place under Digha police area and arrested the principal accused Sonu Kumar alias Prakash Yadav and his two other accomplices in connection with the murder.
Police recovered Rs 3.01 lakh of the Rs 6 lakh looted by the accused from Pappu Yadav's house,during today's operation, Raj said.