Wassem was killed on August 13 by his friends who slit his throat with knives, Sahibabad SP Salman Taj Patil said.
The trio, Irshad, Gulsher and Kaloo took away Waseem on the pretext of repaying him Rs 1.5 lakh which Irshad had borrowed from him, police said.
Waseem was living in Irshad's house and lent him a loan to start some business. During the stay, Waseem tried to develop illicit relations with Irshad's wife to which he could not tolerate, they said.
On August 13, the three along with Waseem were in an inebriated state after which they killed him by slashing his neck with a sharp weapon.
Police recovered two chopping knives from the accused.