The sarpanch of Dadiana Kalan, Sandip Kumar China, 45, was shot dead at his factory in Dosarka in Hoshiarpur district on Thursday.
Three assailants came on a motorcycle, one of whom fired at him.
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China was rushed to a nearby private hospital where he was declared brought dead.
Deputy superintendent of police Talwinder Kumar said that murder case was being registered against the son of Asalpur village sarpanch and two unidentified persons.
The incident is suspected to be a fallout of an old rivalry, he added.