MOSCOW — The body of a missing city legislator and construction tycoon was found in a private basement garage on the city’s outskirts, inside a rusted metal barrel filled with concrete, the police said Monday.

Russian television showed investigators removing the body of the man, Mikhail Pakhomov, 36, on Sunday evening from the garage, 20 miles east of Moscow, where, the police said, he had been tortured and killed over an outstanding $80 million loan.

The killing recalled the brutal violence that routinely emerged from business disputes in the 1990s. Mr. Pakhomov, who was reported missing last Tuesday, was a promising young star in United Russia, the ruling party founded by President Vladimir V. Putin, and had served as head of a construction company that was reported to have won large contracts to develop utilities and infrastructure in several cities.

Sergei B. Ivanov, Mr. Putin’s chief of staff, last year called housing and utilities services one of Russia’s most corrupt sectors. Many lucrative contracts are doled out on the municipal level, and large sums of money are at stake.