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He was identified as Milon, brother-in-law of deceased Abul Khayer, owner of Sajeeb Builders.
Sudip Kumar, deputy commissioner of Gulshan Division of DMP, said law enforcers arrested Milon from Bashundhara area in the morning.
Later, he confessed his involvement in the murder after he had been produced before a court.
Milon said the deceased took an amount of TK 8 lakh from him long ago.
On Friday, he had an altercation with Abul Khayer over repayment of the loan, that finally resulted in the murder, he disclosed before the court.
Abul Khayer was found dead on the top floor of an under-construction building at Bashundhara Residential Area in the city on Friday.
Quoting the victim's brother Abdul Bari Babul, police said Khayer went out from his residence on Thursday evening after receiving a phone call and remained missing since then.
Later, someone noticed the body on the roof of the second-floor under-construction building at ‘M’ Block and informed the matter to police who recovered the body around 10:15am, said Officer-in-Charge of Bhatara Police Station Muktaruzzaman.
The body bore injury marks on his head.
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