Mohammad Husain of Assam's Barpeta district was arrested from Gurgaon for killing a 12-year-old girl.
The victim's brother, Asgar Ali, also from Assam, said in his complaint filed at Farukh Nagar police station that they were living in the Farukh Nagar area for the past 10 years.
Husain had borrowed Rs.30,000 from Ali's father but refused to repay the same.
"When he (accused) was questioned by a community panchayat and asked to return the amount, he first attempted to rape my sister and then murdered her to take revenge," Ali said in his complaint.
The incident happened Sep 30.
"The accused killed the victim by smashing different parts of the body, including the head and private parts with some blunt object," police official Naveen Sharma told IANS.
"We are grilling the accused," Sharma said.