Body of 48-year-old Dara Singh, who was into jewellery and real estate business, was found in a bag at the house of his employee Tarsen, who has been arrested, they said.
Tarsen was furious over Singh denying to lend him money, and hatched a controversy along with his brother to kill him, police said.
He used to look after his real state work and was given a flat by Singh in Palam area.
On Friday night, Tarsen called Dara at his flat, where he and his brother killed him and stuffed his body in a suitcase.
"After committing the murder, Tarsen went to work at Singh's office on Saturday. However, after police recovered the body of Singh from Tarsen's flat, he was interrogated at length," said ACP (South-West), Anil Kumar Ojha.
Tarsen confessed to his involvement in the crime and efforts are being made to arrest his younger brother, who is still at large, he said.
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