Police arrested Rajendra Vide, 19, from the flat for allegedly beating to death Mahant Dandi Goswami with a wooden rolling pin, said inspector J D Raval of JP police station.
He said Vide had asked Goswami to give him Rs 1000 for visiting his native village in Uttar Pradesh.
"However, aggrieved by the refusal, Vide repeatedly hit Goswami with the rolling pin at the latter's flat in Kabir Complex," Raval said.
Police said that they were informed about the incident after neighbours rushed to Goswami's flat hearing his screams.
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Police found Vide hiding behind a refrigerator and arrested him.
Goswami's body has been sent for postmortem and further investigation is on, Raval said.
Goswami had a number of followers.