Assistant police inspector S S Dikle of the Manpada police station told PTI that fish vendor Ganesh Chavan (35), had given a loan of Rs 2 lakh to a tailor Santosh Chavan.
He asked Santosh to return the money lent to him after which Santosh and six others attacked Ganesh with a chopper, knife and other lethal weapons on September 26 and killed him, the police official said.
The police official has named the accused as Santosh Chavan, Ramesh Pawar, Swapnil, Shakeel, Chander, Jameel and another unknown person.
The accused have been booked under Section 302, Section 143, Section 147, Section 148, Section 149 of the Arms Act as well as Section 4 and Section 25 of the Bombay Police 37(1) 135, the police official said.