Sarla Vasudevan (75) was found killed at her residence in V P Road area of south Mumbai on September 29. Her nephew Mayuresh Redkar (41), a resident of Dombivali in adjoining Thane district, was called for questioning.
During questioning, Redkar broke down and confessed to the crime, they said.
According to police, Redkar had borrowed money from his maternal aunt around three years ago to start his own business. However, he failed miserably in his business plans and started working in a private firm in suburban Mahim.
On the fateful day, a heated argument broke out between an intoxicated Redkar and his aunt over the issue of money he had borrowed. In a fit of rage, Redkar allegedly pushed her to the wall and strangled her to death, they said.
Initially, police registered a case of accidental death. However, the post-mortem report revealed that the senior citizen had been smothered.
Vasudevan, a divorcee, had been living alone in her house since the last several years.