Assistant police inspector Suman Chavan of the Naupada police station told PTI that there was a long standing dispute between the victim and her husband's younger brother's wife over the issue of a ration card.
It was this morning when accused allegedly doused the victim with kerosene and set her afire.
The police said that the victim who sustained around 95 per cent burn wounds is battling for her life in a private hospital.
The police has identified the accused as Manju Deepak Shukla.
The police has booked the accused under Section 307 of the Indian Penal Code, but no arrest has been made so far in connection with the offence, the police said.