The Narsipatnam Town police on Friday arrested three persons in connection with the murder of 19-year-old Madala Raghu Varma, who was murdered over rivalry in ganja business on Monday.
The arrested were identified as Marra Chinni (24), resident of Narsipatnam, S Narayana Murthy (21), native of Rolugunta area and V Ramana (24), a private employee and native of Guramdorapalem.
The police said the deceased Raghu Varma and accused Narayana Murthy were involved in ganja trade and they were arrested by Golugonda police for transporting the contraband in August 2016.
Later both had some differences and around two months back Raghu had demanded money from Narayana for doing the illegal business separately.
Refusing to give money to Raghu, Narayana entered into a heated argument with him and Raghu had beaten up Narayana for refusing his request and also threatened him with dire consequences.
According to Narsipatnam ASP Aishwarya Rastogi, said that upset over the incident, Narayana developed a grudge on Raghu and with the support of Chinni and Ramana, Narayana has allegedly eliminated Raghu by stabbing him near RTC Complex in Narsipatnam on August 14. The police arrested the trio and seized a bike from them.