The incident took place under Amla Police station limits on Sunday evening and the matter came to light after the blood-soaked body of the merchant was found from the village.
The accused, identified as Bhojraj Sahoo was killed using a heavy stone by the victim Renuka Deshmukh.
Police said that three months back Renuka had filed a complaint with the police saying that Bhojraj was harrassing her.
They said Bhojraj was arrested for sometime and a case was filed against him under section 354.
According to police, a case under section 302 has been filed against Renuka who was produced in a court which sent her to jail.