Abul Khayer, a businessman and owner of Sajeeb Builders, was killed on Thursday as he was unable to repay a Tk8 lakh loan which he took from his brother-in-law years ago.
Police arrested Milon, brother-in-law of Abul Khayer, from the Bashundhara area in the capital on Saturday in connection with the murder.
Sudip Kumar, deputy commissioner of Gulshan division of the Dhaka Metropolitan Police (DMP), said law enforcers produced Milon before a court where he confessed his involvement in the murder.
In a media briefing on Sunday, the police official said both Abul Khayer and Milon were involved with building construction and had been working for 27 years.
Later, Khayer started his own firm and Milon was working there as head of construction working team.
After the arrest, Milon gave confessional statement before a court in the capital on Sunday.
In his statement, Milon said Khayer was unable to repay the loan due to a downtrend in the business because of the Covid-19 pandemic.
Milon called Khayer on Thursday for a final discussion on the loan repayment.
At one stage of the altercation, MIlon hit on the head of Khayer using a rod, leading to his death.
Milon also confessed that Khayer took Tk8 lakh in loan from him years ago.
He claimed that Khayer was depriving him of his rightful payments for years. So, they had a brawl about the issues of loan repayment and paying service benefits, which led to the killing.
Earlier on Friday, Abul Khayer was found dead on the second floor of an under-construction building at Bashundhara Residential Area.
Quoting the victim's brother Abdul Bari Babul, police said Khayer (52) went out from his residence on Thursday evening after receiving a phone call and remained missing since then.
Later, someone noticed his dead body on the roof of the second-floor of the under-construction building at M Block and informed the matter to police.
Police recovered the body at around 10:15am on the following day, said officer-in-charge of Vatara Police Station Muktaruzzaman.
The body bore injury marks in the head.