The Udupi district police have arrested Derrick Crasta, 50, of Kundapur, accused of murdering his business associate, Ivan Richard Mascarenhas, 45, in the early hours of Friday.

In a press release, the police said Crasta was arrested from Belake village of Bhatkal taluk in Uttara Kannada district on Saturday. He was arrested and produced before a jurisdictional court.

The police said the two had an argument over a financial matter on Friday. Crasta allegedly challenged Mascarenhas to come to Kundapur and shared a location near Holy Rosario Church. Mascarenhas arrived there with a woman at about 1.30 a.m., while Crasta reached the spot around 3.15 a.m. When Mascarenhas stepped out of the car, Crasta allegedly pulled out a firearm and opened fire. The bullet struck Mascarenhas in the waist, and he collapsed and died on the spot, the police said.