Kofi Ram (35) had come to meet his two brothers staying in the area from Nepal when he was killed by Hira Lal (40), the police said.
On Monday, Ram, while drinking alcohol with his brothers -- Lal and Hemlal (43) -- asked Lal to give him money from his savings of Rs one lakh.
The duo got into an argument and Ram threatened to break a beer bottle on Lal's head.
Lal, in a fit of rage, picked up a knife and slashed Ram's neck and fled the spot. Hemlal alerted their landlord and police.
A raid was conducted and he was arrested yesterday.
He told police that he had plans to escape to Nepal.
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