Net Ram, priest of Kusht Ashram, was beaten by over 10 assailants who also took away Rs 1 lakh cash and ornaments from the temple premises, they said.
Ram succumbed to his injuries in a civil hospital, police said.
Senior police officials including IG G S Dhillon and SSP GS Randhawa reached the spot to take stock of the situation.
A case has been registered and the matter is being investigated, they said.