The deceased was Khorshedur Rahman, president of Ostadhar union council 9 No ward unit Awami League, and son of Abdus Sobhan.
Local sources said Khorshedur had a grocery shop in the area and one Moina Mian bought some goods from the shop for credit Tk180.
Later, Khorshedur demanded the money. But Moina denied for giving the payment. At one stage the duo got locked into altercation over the issue and Moina hacked Khorshedur with a knife leaving him dead on the spot.
Haider Ali, officer-in-charge of Nakla police station, said on police recovered the body and sent it to hospital morgue.
The police also tried to arrest Moina, said the OC.