The deceased has been identified as Sham Lal, who had gone missing under mysterious circumstances on Tuesday, they said.
The body was spotted hanging from the tree this morning by some villagers, who informed the police.
Lal's family members suspect he was murdered over some rivalry, police said, adding a case has been registered in this regard.
"The body has been sent for postmortem. Once the report comes out we will be able to ascertain whether it is a case of murder or suicide," SHO Somveer Singh said.
