The police arrested the accused man on Tuesday and booked him under various sections.
A 26-year-old manager of a hostel meant for paying guests allegedly committed suicide by hanging himself at his residence in Maharashtra's Navi Mumbai township, police said on Tuesday.
The manager was found dead on Monday morning at his residence in Kharghar following which the police arrested a 32-year-old man who operated the private hostel, located in Ulve area, on charges of abducting the victim and abetting his suicide, they said.
The accused suspected that the victim misappropriated Rs 60,000 of the hostel's funds which were later recovered from him.
The accused also claimed that the manager had been taken an additional Rs 5,500 from the facility's customers over and above the cost of staying, NRI Sagri police station's sub-inspector Subhash Shelar said.
On Sunday, the accused, along with some associates who are yet to be identified, allegedly abducted the victim from Ulve.
They took him to a flat near a temple in Divale village and allegedly assaulted him with an iron pipe, the official said.
The victim was depressed over this which led him to take the extreme step, he said quoting a complaint by the mother of the deceased.
The police arrested the accused man in the wee hours of Tuesday and booked him under sections 306 (abetment of suicide), 363 (kidnapping) and 34 (common intention) of the Indian Penal Code, the official said.
Search was on for the others involved in the case.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)