Hitesh was abducted last evening while he was playing near his house in Azad Nagar, after which the boy's father, a carpenter, received a call from the accused demanding Rs 10 lakh, SHO Kotwali police station Mahaveer said.
The juvenile accused was staying as a tenant at Hitesh's house.
The three accused have been arrested.
He along with his two friends Jagdish and Manoj kidnapped the boy and demanded the ransom.
"When they came to know that police was searching for them, they stabbed Hitesh to death and dumped the body near his house," Mahaveer said, adding that the body was recovered late last night.
The three accused have been arrested, he said.