The incident occurred last night when Chintamani (50) was sitting outside his house and his brother-in-law, Moolchand, allegedly threw a crude bomb at him killing him on the spot, they said.
Chintamani's servant, Munish, sustained injuries in the incident.
Police suspect that the attack was a fallout of some old enmity.
Victim's wife, Sunita, is the sitting corporator for the area.
Police have launched a manhunt to nab the accused who is absconding.
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