An elderly retired army man shot dead two persons following a property dispute at Surajkunj in Rishipuram Phase-I under the Govindpoura police station in Bhopal on Sunday afternoon.
The army man, Harinarayan Singh, 73, was later caught by residents and handed over to the police.
The dead were identified as Nirbhay Singh (23), a resident of Badkhera, and Jitendra Bhargava (32), a resident of Dabra in Gwalior district.
Nirbhay was a son of a police head constable Shaitan Singh, who is posted at the Shahpura police station in Bhopal.
Govindpura city superintendent of police (CSP) Dr Shiv Dayal said the accused, who had retired from the post of subedar in the Indian Army, had a property dispute with one of the dead.
"On Sunday noon, he went to the spot and first shot Nirbhay and later shot Jitendra Bharava. Both were rushed to a private hospital where they were declared brought dead," he said.
According to sources, Harinarayan, a resident of DIG Bungalow locality, had loaned Rs 1 lakh to a person Abhay Narayan Srivas, who worked at Bharat Heavy Electronics Limited, Bhopal, as a fourth-grade employee, about 13 years ago.
Srivas had promised to return the money in three years, but could not do so.
Later, he signed an agreement with Singh that if he would not able to return the money within the next five years, Harinarayan would be entitled to occupy his two plots in Rishpuram Phase-I.
As Srivas again failed to return the money within the specified time limit, Harinarayan constructed a building on the plots about five years ago and rented out the rooms.
Source said about three years ago, when Srivas went to Harinarayan to return the money, he refused to accept it, saying he had constructed a building and he was the owner of those plots.
Harinarayan also asked Srivas to transfer the plots in his name, but Srivas refused to do so, which led to a dispute between the two.
Three months ago, Srivas sold the plots to a person Aditya Upadhyay.
Later, Upadhyay occupied the buildings and deployed two security guards at the building and appointed his brother-in-law Jitendra Bhargava as a caretaker of the building.
"Bhargava and the security guards forced the tenants, who were living in the buildings, to pay rents to them. This led to a dispute between Upadhyay and Harinarayan and they used to quarrel every day," said a police official.
The police said a case had been registered against Harinarayan and he had been arrested.
The police added that he had used his licensed gun to commit the crime.