The accused Laxman Purty was arrested during the day after the crime was perpetrated last night at Piridih village, Superintendent of Police Amarnath Mishra said.
The 25-year-old accused killed his mother-in-law Puni Mundain (60) with a sharp weapon, police said.
His father-in-law, Panda Munda, who filed the FIR accusing Purti of harassing them over property and demanded ownership change of their land, and when Mundain protested Purty allegedly killed her.
Purty, who married one of the two daughters of the Mundas, allegedly demanded the property as they did not have a son.