Raipur: An automobile dealer was on Tuesday shot dead in his shop here in Chhattisgarh allegedly by a police constable following a dispute over a car deal, police said.

The incident occurred this afternoon in Pachpedi Naka area when Sanjay Agrawal was in his shop, Purani Basti area City Superintendent of Police (CSP) Krishna Kumar Patel said.

The accused constable Manoj Sen, who is posted at the Police Line, has been arrested, he added. Agrawal, who owns Shri Sai Motors, used to deal in the business of second-hand cars.

"On March 4, Sen had purchased a used car at Rs 3.70 lakh from Agrawal and paid him Rs 3 lakh. However, he left the car with Agrawal the next day for repair, after finding some fault in it," the CSP said.

Patel further said that Sen has been constantly contacting Agrawal to deliver him the car, but the latter was apparently kept dilly-dallying.

On Tuesday, Sen reached Agrawal's shop with an Insas rifle and confronted him, which led to a heated exchange between them, the officer said.

"Following the altercation, Sen fired two rounds at Agrawal," Patel said, adding that Agrawal's employees rushed him to hospital, where he was declared brought dead.

The weapon used in the crime belongs to a relaive of the accused constable who is posted with the Chhattisgarh Armed Force (CAF) battalion stationed in Mana camp area here, he said.

A case has been registered and further investigation is underway, he added.