74-year-old Ramniklal Jogiya had gone missing as he walked home from work and was forced into a vehicle by masked men.
"A 20-year-old man has been arrested on suspicion of kidnap and murder and is currently in police custody where he will be questioned by detectives," Leicestershire Police said.
Two other men, aged 18 and 22, both from Leicester, were arrested on suspicion of kidnap and murder on Monday and are in police custody.
Three other Leicester men, aged 19, 20, and 23, were charged on Tuesday evening with kidnap and robbery of Mr Jogiya.
The accused appeared before Leicester Magistrates' Court on Wednesday and were remanded to appear at Leicester Crown Court on February 28.
Mr Jogiya, father of three sons, was last seen on CCTV locking up and leaving the family's jewellery store Vama on Belgrave Road known as the Golden Mile due to its row of jewellery shops, mostly run by Indian-origin merchants.
The statement said, "Ramniklal was a loyal, gentle man who was passionate about his family.
"He was a doting husband, father, granddad, brother and uncle, who loved nothing more than spending time with his family, whether it be sharing food, watching the cricket or catching up with favourite Asian TV serials with his wife".
The family also urged anyone with information about the attack to contact police so that those responsible for his death can be caught.
The septuagenarian's body was recovered from Gaulby Lane in Stoughton area of Leicester. A murder investigation was launched and initial inquiries had established that he had been pulled into a vehicle and taken captive against his will from Belgrave Road.