The incident occurred early in the morning yesterday when around eight persons entered the premises of Congress leader Satyanaryan Rathi's residence to fell a sandalwood tree which stood there, police said.
But woken up by noises made by the intruders, members of Rathi's household came out to confront them.
Seeing the family members, the intruders tried to escape from the spot in a jeep. It was then that Rathi was mowed down as he tried to stop their vehicle, police said.
A case has been registered against unidentified persons, police said, adding that a probe was on in the matter.
Meanwhile, expressing grief over Rathi's death, Congress General Secretary Digvijay Singh demanded immediate arrest of the perpetrators of the crime.
He also criticised the state government over the law and order situation in Madhya Pradesh.