Bhati, who was earlier in the property business, was provided with gunners due to a threat to his life.
SP (rural) Brijesh Kumar Singh reached the site and pacified the villagers, who were not allowing the body to be taken for post-mortem.
The villagers were demanding arrest of the killers.
Last year, Bhati's brother-in-law was shot dead by assailants. Village pradhan Billoo Singh and his son were made accused in the case.
Bhati's family members had then told police that Singh had actually come to kill Bhati but accidentally killed his brother-in-law.
Police suspect that old enmity was the cause of the murder.