Harish Keshav Wasnik (59), a retired lecturer from Arts College here, was found murdered on August 10.
Police had initially registered a case of robbery and murder against unidentified persons.
Akshay Wasnik, son of the deceased, had earlier claimed that he and his mother were away at the time of the incident.
Akshay came under the scanner after police learnt that he and his father used to have arguments quite often over the former demanding money from his father though he was jobless.
On Saturday night, Akshay allegedly had a heated argument with his father who had scolded him for spending money, and in a fit of rage hit him repeatedly on head with a steel hammer, police said.
Police also arrested Akshay's friend Abhijeet (28) who hails from neighbouring Wardha district for aiding him in the crime.
Akshay has confessed to the murder, police said, adding that he was booked under relevant sections of Indian Penal Code including murder.
