A group of Maoists laced with firearms arrived in the weekly market in the afternoon and shot Raja Bhengra dead, they said.
The ultras fled the spot after committing the crime, with panicked shopkeepers downing their shutters and villagers rushing indoors.
The rebels had also shot Bhengra's son, Mukta Bhengra, in a similar fashion two years ago.
A police team rushed to the spot to investigate the incident, the police added.