A 32-year-old Indian who had come to invest in Nepal only four months ago was killed in a remote town in the far west of the country, police said on Friday.
Vishal Jain had come from India's Agra city, famed for the Taj Mahal, to invest in and help run a condiments factory in Mahendranagar in Kanchanpur district.
Jain was returning home from the Vaijanath Katha Factory he used to run with relatives on Saturday when he was kidnapped, the police said.
His family received a call for ransom with the kidnappers asking for NRS 20 million. After negotiations, the family agreed to pay NRS 1.10 million but there was no trace of the kidnapped man.
On Wednesday, the police found his body in a forest. His hands and feet were tied, a gag was placed over his mouth and a blindfold over his eyes.
The body bore stab marks as well as bullet injuries. A post mortem report said he had died due to gunshot wounds.
No one has been arrested yet.
A tearful Jain family decided to take the body back to Agra for his last rites.
Since the fall of King Gyanendra's government, there have been growing attacks on businessmen in Nepal, especially Marwaris from India, who are regarded as rich but soft targets.
Prominent Indian expatriates in Kathmandu have also been targeted by kidnappers.