Police said the deceased worker, Manohar was travellingin his van from his native village of Poornankuppam when he was waylaid by a gang who allegedly hurled country-made bombs at the vehicle on the Thavalakuppam village main road.
Though he tried to escape, the gang chased him, attacking him with lethal weapons, police said.
Following the murder, traffic came to a halt on Puducherry-Cuddalore road and all shops and establishments downed their shutters. Police have restored calm.
Manohar is the brother of one Kamaraj, a youth congress leader, who was murdered almost a year ago, police said.
Leader of the Opposition V Vaithilingam alleged that murders have become almost a routine affair in Puducherry. He said the failure of the law enforcement machinery to nab the accused involved in Kamaraj's murder was apparently the reason for the culprits to be on the prowl.