The incident occurred on street number 6 at around 4.30 PM. Dr Sasi Kumar, the accused, allegedly shot Dr Uday inside a car before fleeing from the spot.
Police have formed two special teams to nab Dr Kumar.
According to the police, Uday, Sasi Kumar and Dr Sai Kumar are partners in a multi-specialty 100-bed hospital in Madhapur area here which was inaugurated on January 1.
The incident could be a fallout of disputes over running of the hospital, Deputy Commissioner of Police (Central Zone) V B Kamalasan Reddy told reporters.
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As per the preliminary probe, Sasi Kumar had invested about Rs 75 lakh in the hospital. Dr Uday was the medical director, Sai Kumar CEO, and Kumar the director, the DCP said.
"It seems differences had erupted and Dr Kumar had sought his money back," said the DCP.
Today the three met for discussing the issue. At the time of the incident, they were sitting inside a car: Uday in the driver's seat, Sai beside him and Kumar on the backseat.
Narayanguda police have registered a case of attempt to murder under section 307 of IPC.