The incident happened last night when Mahavir was having liquor with three of his friends, they said.
However, an altercation broke out following which Mahavir was beaten up by the trio who fled from the spot after he fell unconscious, police said.
Mahavir was found dead in his room this morning.
The arrested persons have been identified as Ravi and Prempal while the third accused is absconding, police said, adding, a manhunt has been launched to nab him.