Shajia was killed and Bushra (24) injured when their landlord Altaf allegedly stabbed them several times, Circle Officer Kotwali Vineet Bhatnagar said.
The incident occurred after an argument broke out between the two sisters and Altaf over the latter's demand that they vacate the rented accommodation, he said.
Shajia died on the way to hospital while Bushra is admitted to a hospital in serious condition, he said.
Lisari Gate Police Station In-charge Ravindra Singh Yadav said the accused is absconding.
The body has been sent for postmortem and an investigation is underway.