Bean Singh, who retired from the Army last year, was murdered on Thursday night following a spat over the illegal sale of liquor and overcharging, they said.
A case has been registered under Sections 302 (murder) and 120B (criminal conspiracy) of the IPC against a liquor contractor and four of his aides, Samalsar police station SHO Bhupinder Singh said.
The victim is a resident of Cheeda village. He went to buy liquor at a vend in Thathi Bhai village. The vend was recently sealed by the Excise and Taxation Department for alleged non-payment of excise duty.
The vendor and others allegedly thrashed Singh, leaving him seriously injured, the SHO said.
Beant later managed to reach his home where he narrated the incident to his family. He later succumbed to his injuries.
Police said efforts are on to nab the accused.