The incident was reported from west Delhi's Moti Nagar on August 31.
The body of Priskilla David (53), a widow, was found lying in a pool of blood on a sofa by her daughter after she returned home from work. Her body had stab injuries on the stomach and chest.
David's neighbours and relatives were questioned and the CCTV footage from the area was scanned.
During investigation, it was found that one Lalit Chandna, David's nephew, had asked her daughter for some money about a month ago, said Deputy Commissioner of Police (West) Vijay Kumar. She had refused to lend him money.
On scrutiny of CCTV footage, Chandna was also seen going towards David's house. He was traced and interrogated yesterday.
Initially, he denied his involvement but later confessed to killing the woman, said the officer.
He said he was in dire need of money since he was jobless. He had come to loot money from his aunt and kill her.
He first murdered her by stabbing her repeatedly with an ice pick and then fled after taking the money and jewellery.
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