Renku Rubaali Khalipa (22) was allegedly set afire on August 15 by a group of men at his tailoring shop in Ulhasnagar's Azadnagar locality following a dispute over Khalipa and his associates allegedly trying to extort money from them, police inspector G V Palange said.
A severely burnt Khalipa was rushed to Shree Hospital at Katemaivili where he died at around 11.30 PM yesterday, he said.
One of the accused, identified as Sunil, has been arrested while police are on the lookout of the others involved in the offence, he said.
Earlier, the accused had also lodged a complaint of extortion against Khalipa, the police officer said.
Following the man's death, there was tension in the locality. Police bandobust in the area has been stepped up, Palange added.