The incident took place yesterday when Udayveer was digging a pit in a field and the wall of a house collapsed on him, they said.
Police said he remained trapped until the villagers pulled out the labourer and took him to a hospital, where he died.
The villagers blocked a road of the town demanding compensation for the victim's family.
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"A case under sections 288 (Negligent conduct with respect to pulling down or repairing buildings) and 304A (Causing death due to negligence) IPC has been registered at Bindapur police station against landlady Rajni on the complaint of Ashwani's wife Ragini," said DCP(Southwest) Surender Kumar.