The man killed his employer with an iron rod. (Representational)

The owner of a soda factory in Uttar Pradesh's Mathura was allegedly killed by an employee after he refused to pay for his wife's surgery, the police said today.

The body of Dinesh Gupta was found in his factory on Sunday night after his family members informed police that he left home in the afternoon but did not return.

The incident had triggered protests by businessmen and traders who held demonstrations demanding the immediate arrest of those involved in the murder.

"The accused has been arrested. The iron rod, used for killing him, has also been recovered," Superintendent of Police Gyanendra Kumar Singh said.

The employee had been working at the factory for the last three decades, the police said.

The police have recovered Rs 88,000 in cash and some bank documents from the accusd.

The man confessed that he had killed his employer after he refused to give him money needed for his wife's surgery.