Police said that Kamlakar Pohankar, his wife, mother, daughter and nephew were killed with a sharp-edged weapon.
A younger daughter, and niece, of Pohankar, who were sleeping in another room of the house, were not attacked, an official said.
"The incident happened between midnight and 1am today when the family was asleep," said Nilesh Bharne, Deputy Commissioner of Police, Zone 4, Nagpur.
Bharne said that police suspects a close relative to be behind the crime and efforts were on to apprehend him.
A case had been registered and further investigation into the incident was underway, he said.
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