Anand Mishra, the accused, was arrested by the suburban Khar police from Palghar district near Mumbai.
Mishra allegedly hit Upanand Das (24), another watchman, with an iron rod on Friday night, resulting in the latter's death.
During the questioning Mishra told the police that Das used to tell him everyday to report to the work on time, which angered him. There was also a financial dispute between the two, the police said.
Mishra allegedly hit Das four or five times on the head from behind and fled from the spot. The incident took place at about 8.15 pm.
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