A senior police officer said the accused, identified as Abed Mohammad Ajmir Shaikh, allegedly killed the girl after her father demanded Rs 1500 he had lent to Shaikh.
Her highly-decomposed and mutilated body was recovered from bushes near her house after three days.
The deceased was identified by her parents on the basis of the clothes she was wearing last, police said.
The accused was traced to Marona in Supaul district of Bihar recently, following which he was arrested.
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