Vijay Gopal Sarpate (23), the victim, ran a mobile repair shop.
According to police, accused Prem Karotia had pawned his mobile phone with Sarpate and borrowed Rs 500.
Last night when he went to Sarpate's shop and demanded the phone back, the latter allegedly refused.
Following which Prem, his mother Saroj and his relatives Mayur Salvi and Rajesh Kalicharran attacked Sarpate with choppers. Sarpate died on the way to hospital.