Alauddin, 26, was arrested immediately after he shot dead Feroze yesterday.
Alauddin worked as a labourer in a showpiece gramophone manufacturing company where Feroze was the contractor, said AK Singla, DCP(north east).
Feroze was rushed to GTB Hospital where he was declared brought dead by the doctors.
"In her statement, Feroze's wife said that her husband had told her that Alauddin was after his job and might kill him," said the officer.
A case under section 302 IPC has been registered at the Khajuri Khas police station and further investigation is underway to determine the motive behind the murder, the officer said.
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