Daughter-in-law, B Damayanti Reddy and her friend U Narsimha Reddy of Kottaru Nuagaon had allegedly throttled B Janaki Reddy at her house in Shanti Nagar uder Bada Bazar police station on March 19 night, while her son had been to sleep, police said.
Narsimha had taken away the gold ornaments of the widow after committing the crime.
"We have also recovered gold ornaments weighing around 100 grams after arresting the duo yesterday," said sub-divisional police officer (Berhadpur) B K Panigrahi.
Narsimha was working in a private firm in Oman and had come to the village recently, police said.