The incident occurred last night when Velazhagan returned to his farm house in Sanyasikuppam after attending a family function in Tirubhuvanai, they said.
As soon as Velazhagan stepped out of his car, the gang members hurled a country-made bomb at him, which exploded.
When he sustained injuries and collapsed on the ground, the gang hacked him to death and fled the scene.
On receipt of information, police rushed to the spot and conducted preliminary investigations.
Finger print experts were also pressed into service.
More From This Section
Meanwhile, tension prevailed as the news of the murder spread in the village and along Puducherry-Villupuram highway today, with supporters of the deceased staging a road roko.
All shops and establishments along the main thoroughfare were shut.
Police beefed up security and posted pickets in the village to prevent untoward incident.
Special police teams have been formed to nab the accused, police said.