The accused, Lakhan Yadav, a labour contractor with a steel company where the victim's husband works, came to her house on Friday night at Abhitghar when she was alone and sought sexual favours from her.
However, when the woman refused, he threatened her with dire consequences.
He later poured kerosene on the woman and set her on fire, Wada police station inspector Sanjay Hazare said.
The severely charred woman was admitted to the government hospital where she died yesterday, police said.