The body of the 43-year-old Narinder Singh was found yesterday lying in the fields of a farmer at village Sabuwal, near Fattudhinga here, they said.
Singh hailed from village Khuaspur here but was staying in Nagaland due to work.
Accused Jaspal Singh, 42, a resident of village Dulowal was in an illicit relationship with Singh's 40-year-old wife for the past more than two and half years, Senior Superintendent of Police Sandip Sharma said.
"Singh's wife and accused Jaspal Singh hatched a conspiracy to murder him to prevent selling of the land. Jaspal took the help of his friend, Sucha Singh in this task," the SSP told reporters.
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Jaspal allegedly killed Singh with sharp edged weapons and threw the body in the fields.
Farmer Shinder Singh spotted the body in his fields and reported the incident to the police.
Police have arrested all the three accused and registered a murder case against all of them, he said.