A member of the Sankeshwar city municipal council has been arrested on the charge of killing Shaila Niranjan Subedar, 56, a money-lender.
Police officers arrested Umesh Kamble, a BJP leader, on January 20.
Ms. Subedar was shot at close range near her house in Sankeshwar in Belagavi district on January 16. She was hit by three bullets in her head and stomach, and died instantly.
Superintendent of Police Lakshman Nimbaragi, who visited the spot, met local police officers who claimed to have obtained definite leads and that the probe was on the right track. He had formed a team of officers to crack the case.
Sankeshwar is close to the border with Maharashtra.
Investigators found out that the bullets were fired from a country-made pistol. They learnt that the weapon was made by blacksmiths in Sangli, Maharashtra, and handed over to a local leader. The probe ended at the door of Umesh Kamble, who is involved in various businesses, including real estate. Police learnt that the BJP leader had taken a loan of ₹25 lakh from Ms. Subedar and was refusing to repay the money.
He obtained the weapon through a middleman, and shot and killed Ms. Subedar, police said.
The SP congratulated the team led by Circle Inspector Ramesh Chayagol, and comprising Sub-Inspector Ganapati Kogonoli, constables Bheemappa Naganure, Basavaraj Kaparatti and others.
Police are searching for two other accused.