The accused, identified as Suresh Tarwan (20) and Mahender Dhania, were yesterday arrested by Malwani Police.
Urmila Kadam was allegedly strangulated with clothes and killed by the duo in the wee hours of last Saturday.
Her mother, Geeta Patankar (75), who used to live with Urmila, had lodged a complaint against the duo.
When asked about the probable motive, police said Tarwan had taken Rs 45,000 from Patankar in the past promising her a pucca hut, but apparently went back on his word, following which she threatened to approach police if she did not get her money back.