Rehan, a resident of Saheen Bagh area in South Delhi, was beaten to death with iron rods by the accused last night near his house, they said.
Police said one of the accused, Danish, has been nabbed.
During interrogation, Danish told police that he lived in nearby area and had called Rehan to meet him to discuss about the issue pertaining to the money that the victim had took from him to get a bank loan.
"We are have arrested Danish while his three accomplices would be arrested soon," said a senior police officer.