The accused was identified as Vikas Gupta, worked at the eatery along with his elder brother, police inspector of Manpada police station G S Randive said.
"Vikas had some argument with his sister-in-law Neelam (wife of his elder brother) yesterday afternoon. He felt that she did not serve food to him properly," he said.
"After the quarrel, he allegedly strangulated her, stabbed her with a sharp weapon and hit her with a chapati rolling pin," Randive said.
According to police, the accused went to the police station himself and informed them about the incident.
Police have sent the body for post-mortem and the accused has been booked for murder.
Further investigation is on.