Other people involved in the assault will be booked soon, the police said. (Representational)

A 42-year-old man was allegedly assaulted with sticks, and chilli powder was applied on his private parts over "non-payment" of debt in Madhya Pradesh's Khargone district, the police said today.

The police arrested 45-year-old Bhuru Khan on Saturday in connection with the incident which happened in Balkhad village this week.

Shoaib Khan has alleged he had borrowed Rs 10,000 from Bhuru Khan last month, but failed to return the money on time, a police official said.

"Shoaib was called by the accused to an agricultural field near Balakhad village on Monday where he was allegedly beaten up with sticks," said Additional Superintendent of Police Shashikant Kankane.

The accused tied Mr Shoaib's hands and applied chilli powder on his private parts, he said quoting the FIR.

Mr Shoaib was rescued by some local people soon after.

"An FIR was registered at Balakwada police station on Friday and Bhuru Khan was arrested the next day," said Mr Kankane.

He said the people who can be seen in a video clip which surfaced on social media websites, and the person who recorded the incident, will be identified and booked.