Khadia Pradhan of Phuljhari village under Mahulpada police station died after he was hit with a blunt object on the head.
Two persons, Pandu Giri (21) and Peturam Pradhan (20), were arrested in connection with the incident, he said yesterday.
Some villagers suspected that the village faced many problems due to witchcraft by Khadia, his wife Jhubuli (50) and daughter Bhagabati (22).
Unable to bear the harassment by villagers, Jhubuli left home and was staying with her parents for the last six months, the sources said.
Holding Khadia responsible for all wrongs happening to them, the two planned to eliminate him.
They killed him on March 31 when he was going to a nearby stream to take bath.