Sukrat and his wife Sangeeta were found hanging from a tree yesterday in Kanota area.
The accused Ganesh, aged 38 years, was threatening them that he would grab possession of their house if they did not pay him some money.
"The couple had borrowed Rs 5,000 from Ganesh and returned the money well in time, but the contractor was demanding more money from them and mentally torturing them which forced the couple to take the extreme step," police said referring to complaining filed by the deceased man's brother.
"During investigation, the contractor was found guilty and he was arrested", he said.