Police PRO Gajanan Kabdule identified the victim as Vishal Pagare.
Ravi Kushawat, his rival, had allegedly asked Pagare to come to a place near the Kalyan railway station to discuss their dispute.
When Pagare and a couple of his friend went there at around 7 pm, they were attacked by a mob of around 25 men, led by Kushawat, with swords and knives.
Pagare and his friends ran and the assailants chased them to Pagare's office.
The dispute was about mava selling, police said.
Jaideep Sanap, Ravindra Singh and Lakhan Ram Singh were arrested today while search is on for others. A case has been registered at MFC police station.
Police had tightened the security in the town today as tension prevailed.
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