The deceased, identified as Darais Kapadia, had retired as the principal secretary at Bombay High Court, they said.
The incident took place last night and the police officials today claimed to have cracked the case within 24 hours with the arrest of the two accused and recovery of the entire stolen booty.
The accused was identified as Jai Navrang (21), who used to work as gardener-cum-servant with the victim family, and his friend Kamlesh Jadhav (20)- both residents of Parel in central Mumbai.
Yesterday, Leeli had gone to her daughter's house nearby and returned home late night, they said.
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"As she entered the house, the two accused, who were already inside, pounced on her and tied her to a chair. Threatening her of dire consequences, they sought to know the place where the cash and other valuables were hidden," said Assistant Police Commissioner Shivaji Kolekar.
"Jai is the son of one of the auto-rickshaw drivers, who were engaged by the elderly couple on a daily basis," Kolekar said.
He said that at about 9 PM yesterday, Jai and Kamlesh gained access to Kapadia's house and slashed the neck of Darais and rummaged the entire house for cash and valuables, but in vain.
Then they waited for Leeli to come. As she returned home a little after midnight, the two executed the plan.
The woman managed to untie herself and with the help of neighbours, she then approached Bandra police station, where an FIR was registered.
The duo was arrested this afternoon and the entire stolen booty was recovered, police said.