Tata Steel employee Saurabh Kumar Jha (35), whose body was found in a puddle of blood at Talsa jungle in suburban Sundarnagar, 15km from Jam-shedpur, on Friday night, was killed by "friends" who had borrowed money from him.

Police on Sunday arrested Harpreet Singh (32) and Prakash Kumar (30) in connection with Saurabh's murder and also recovered the victim's bike from Prakash's house in Garabasa, Jugsalai.

DSP (law and order) Vimal Kumar said Harpreet, a resident of Kitadih who works with a private bank's loan section, had borrowed Rs 4 lakh from Saurabh two years ago. Prakash, a private firm employee, had on the other hand taken Rs 50,000.

"On the fateful night, Harpreet called Saurabh to Bistupur on the pretext of paying him back. But, the Tata employee, who was a resident of Kadma, was taken to Talsa where the arrested duo stabbed him multiple times and then slit his throat," the DSP said.

According to sources in police, the case was cracked with the help of mobile tower locations. After the body was found, police had contacted the victim's family members who said Saurabh had left home to meet his friend Harpreet because the latter was supposed to return money taken two years ago.

"When Harpreet was initially questioned, he claimed he had paid Saurabh back at Sundarnagar Chowk around 2pm and then left for Ghatshila. But, mobile tower locations showed Harpreet and Saurabh in Bistupur at 2pm. Harpreet was picked up again and grilled. He then confessed to his crime and also named his accomplice who was again an acquaintance of the victim," an officer said.

DSP Kumar said the arrested men were still being quizzed at Sundarnagar thana and would be forwarded to Ghaghidih jail on Monday.

Bank intern 'murder'

The 28-year-old bank intern, whose body was found in the basement of an under-construction building in Bistupur market area of Jamshedpur on Saturday morning, was possibly murdered following a drunken brawl with employees of a beer bar.

Although police are yet to confirm the circumstances that led to the death of Ankush Thakurta - a native of Rou-rkela, Odisha, and working in the HR department of HDFC Bank in Telco - speculations are rife that he was lynched by the staff of Gitanjali Bar on N-Road, barely 100 metres from where the body was found.

According to an eyewitness, four inebriated youths, including Ankush, reached the bar around closing time on Friday midnight and demanded that they be served.

"One of the four (apparently Ankush) abused a bar manager when asked to leave. The latter asked his men to throw the four out. But, the employees allegedly thrashed the young man who abused their boss. As his friends fled, the wounded youth slumped on the ground," the witness told this correspondent.

Bistupur thana OC Srineewash said: "Ankush had injury marks on his face and blood had oozed out of his mouth and left ear. He may have fallen to his death. We are probing the case, registered as an unnatural death."