The murder of financier from the Anna Nagar in front of the Guindy Madras Racing Club on Wednesday evening was a spill over of IPL betting, according sources close to the victim, Ramesh.
Ramesh, who was occasional gambler, had lost heavily in the IPL betting which he was reportedly doing through a bookie in north Chennai.
The bookies, based on trust, allow participants to bet money and collect the amount from them later if you are into series of betting.
Ramesh had placed a bet of Rs 45,000 favouring Chennai team in the IPL final held in May this year in which Kolkata team won.
As he suffered heavy loss, he failed to give the money as promised and the bookie was getting impatient.
The bookie had asked Nayanar Armugham, who is known for using muscle to collect money from defaulters, to collect the amount, which ended in the murder of Ramesh on Wednesday evening, sources said.
Nayanar Armugham who claims to be a auto financier from Vadapalani was arrested two months before for possession of deadly weapons in Guindy.
The police sources said that he was involved in a murder case in Tirunelveli.