The accused, identified as Jagdish Yadav, used to stay with his uncle, Shiv Nath, near the vegetable market at Azadpur, where both worked as labourers and small-time vegetable suppliers. Jagdish allegedly killed Shiv Nath when he failed to return Rs 30,000 which he had borrowed from him, said DCP (Northwest) Vijay Singh.
The police found Nath's body inside the gunny bag near the vegetable market at Azadpur area on Wednesday, after which they started questioning commission agents and labourers in the market. Soon it emerged that the kind of gunny bag inside which Nath's body was found was usually used in lemon transit.
Based on an tip-off, the police arrested Jagdish yesterday from near the fruit market in Azadpur. During interrogation, he told the police that he allegedly killed his uncle with the help of his associate Arjun Bangali, who is still at large, police added.