However, the accused councillor denied all the allegations and said he had no hand in any such incident.
The incident took place yesterday evening following which the accused, Devendra Poni, was arrested, said a police official.
The injured man, who is the father of a local leader, had to be rushed to a hospital. It was his son who called up police control room later, the official added.
"The accused entered into a heated argument with the elderly person and physically assaulted him.
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According to police, the elderly man's relative was constructing a room in the area and they had dug up a portion of the road for the laying of pipes.
The argument with the accused started over the laying of the pipes and it soon turned violent as Poni allegedly lost control and hit the man.
He also allegedly created a commotion in the locality and a police team had to be rushed there to bring the situation under control.
"I asked senior police officials to even check footage from CCTV cameras in the area to confirm that I was not present there," said Poni.