Krishna Haldar, a fish seller, was allegedly killed by four persons who cornered him, stripped him naked and tied his feet before slashing his throat, they said.
Of the four accused, one person has been arrested, police said.
After the accused confessed to his crime to the locals, he was thrashed by them before being handed over to the police.
Halder was carrying Rs 30,000 which could have led to his killing, they said, adding that the body has been sent for post-mortem and efforts are on to nab the other culprits.