Yusuf Ali alias Raja, a streetside vendor, and a woman strangled to death Trilok Nath on Sunday evening as he owed Raja Rs 2.5 lakh, police said.
Nath's body was found in Rosy colony on Monday morning, they said.
During interrogation, Ali said that Nath had borrowed Rs 2.5 lakh from him, which he refused to return, they said.
Ali and his woman accomplice sedated him with alcohol before strangling him to death, they said.
Police are on the lookout for another woman suspected to be involved in the case.
