Chetan Das, a native of Rajasthan, was killed inside the Prachin Sidh Baba Mandir premise last night, they said.
"Two youths who came on a bike entered the temple last night and opened fire at him and fled," SP Jagdish Sharma said, adding that the priest received four bullets on his head and three bullets in his chest.
As per preliminary investigation it was found that Das also dealt in property business and that some property dispute could be the reason behind the murder, Sharma said.
A case has been registered against unknown persons, the SP said, adding further investigations are on to nab the miscreants.