The two were arrested here yesterday for allegedly killing Bala Krushna Patra (55) at Kharianal near Buguda on November 24, DIG (southern range), Amitabh Thakur said.
The arrested persons were identified as Bhagaban Sahu (45) of Sahebagada, stated to be the main accused and Sunil Sethi (23) of Polasara. Police recovered a mouser and six rounds of life ammunition from Sethi.
Rivalry in liquor business between Patra and Sahu was stated to be the main reason behind the murder, DIG said.
"We have identified the other accused who is likely to be booked soon," Thakur stated.
"We had formed three squads for investigation of the case from different angles and reached a conclusion that incident was due to liquor business," SP (Berhampur) Narsingh Bhol said.