Shivaji Ghodke, the accused, had killed Baliram Rakte (25) under the railway bridge at Dadar railway station in the city in November 2015, police said.
Ghodke and Rakte had had a fight over a bottle of industrial chemical which drug addicts inhale for getting high, according to the police.
After the murder Ghodke was spotted in the footage of one of the CCTV cameras at the railway station, but could not be traced further, said Ajay Sawant, senior police inspector of Crime Branch.
Some days ago the Crime Branch sleuths got a tip-off that Ghodke runs a stall outside Shrirampur railway station in Ahmednagar district, Sawant said.
A team of Crime Branch today arrested him at Srirampur. Further probe is on.