Roh police station SHO Dharmendra Kumar said Sunil Sao, who ran a flour mill at Roh bazar, was allegedly beaten up with stick and declared dead at Sadar hospital.
Police arrested one person named Sanoj in connection with the murder after preliminary probe indicated his alleged involvement in the crime.
Sanoj had been demanding Rs 5000 from Sao but the latter could give him only Rs 1000, inquiries revealed, the SHO said.