Lahu Narayan Beturkar, a history-sheeter, was killed near his house while he was asleep, said ACP (crime) Mukund Hatote.
Beturkar's wife Jayabai (58) was injured during the attack.
The accused are identified as Suresh alias Bharya Ramesh Waghe from ST stand in Murbad village, and Gorakhnath Waghe near a temple in Kishore village.
According to police, the duo were on the run in a 2014 molestation case.
Police are looking for three more persons who were suspected to be involved in the crime.
Police said that the accused and the victim had had an argument over playing a musical instrument during immersion procession of Lord Ganesh.
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