Raju Bhattacharya, 44, was shot dead by assailants on April 26 night when he was standing outside his house in Tezab mill colony.
The main accused, Manohar Shukla, was arrested from the station and a gun allegedly used in the murder was also recovered following his interrogation, a police spokesperson said.
According to preliminary investigation, the murder was a fallout of rivalry between Ragu and the assailants over railway contracts.