Former village head Durga Prasad (45), his brother Sunil (25) and his wife Manita (24) died on the spot after three persons broke into their house late last night and opened fire, IG (law and order) B P Singh said.
Two other relatives, Ludhaiya (60) and Goli, who sustained bullet injuries, died on the way to the hospital.
"Three other persons -- Ram Niranjan, Laxmi and Roshni -- who were present in the house at the time of the incident sustained injuries and have been admitted to the district hospital," Singh said, adding that 19 cartridges were recovered from the spot.
Police suspect personal dispute to be the motive behind the killing.
"Sunil recently had an altercation with his business partner who is the brother-in-law of Suresh Balkhadia, a dacoit carrying a reward of Rs one lakh on his head," Singh said.
"Prima facie it looks like Balkhadia's men are behind the killing. We are probing into the matter," he added.
