The militants kidnapped Mohammad Shafi Dar, a contractor by profession, from his native Aglar village in Pulwama, at around 5.00 pm yesterday, the police said.
Dar's bullet-ridden body was recovered from a nearby village late last night.
Although police officials said the investigation is still in its infancy, local commander of Jaish-e-Mohammad militant outfit Altaf Baba is believed to be behind the killing.
No militant outfit has claimed responsibility for the killing which came hours after ultras shot dead a sarpanch in Sopore area of Baramulla district yesterday.