Some locals spotted the severed head wrapped in a plastic bag near a salon in Khatrap locality of Badlapur township in Thane yesterday morning.
They informed the police who then searched for the body and found it lying near an eatery in the same locality, the police said.
The deceased, identified as Sunil Achari, aged around 27, was staying at the house of Rajeshkumar Nepali (30), a cook working with the eatery near which the body was found, a police official said.
Since the recovery of the body, Nepali was not seen at his home.
The deceased's mobile phone and his wrist watch were found in a bag recovered from the accused.
The Badlapur police have registered an offence under IPC sections 302 (murder) and 201 (causing disappearance of evidence of offence) against the accused.
The process was on to bring him to Badlapur for further probe in the matter, police said.
The motive behind the killing was yet to be ascertained, they added.
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