Additional Superintendent of Police Vinayprakash Paul said the accused have been identified as Vishnu Choudhary, Alok Chouhan, Deepak Somaji and Sumit Kalyane.
Chouhan is a clerk with the higher education department in Madhya Pradesh, police said.
According to Paul, Choudhary had got into a dispute with his partner, Lalli Yadav, over some monetary transaction and, thereafter, is alleged to have given a "contract" for Rs 10 lakh to Chouhan to kill Yadav.
Chouhan hired Deepak and Sumit to execute the plan and they purchased three pistols for carrying out the job, police said, adding, however, that the trio was arrested from the Niranjanpur area following a tip-off.