47-year-old Murali, working in the Puducherry Slum Clearance Board, was attacked at his residence at nearby Moolakulam village by the gang which barged into the house armed with lethal weapons, police said.
Four of the five assailants, allegedly involved in the murder, have been arrested, police said.
Three of the culprits had arrived on a motorcycle while the others had reached the house on foot. They left the two-wheeler behind after committing the crime.
Police said previous enmity was suspected to be the reason for the murder.
A search is on for the fifth assailant.
