The police said Suchitkumar Bal confessed to killing Sanjit, alias Sanjay Khosla. (File Photo)

A powerloom labourer killed his friend and colleague in Surat, disposed of his body in a cemetery, and severed his head, throwing it into bushes three kilometres away a day later, the police said.

The police, who identified the victim as Sanjit, alias Sanjay Kholsa, 36, arrested his friend Suchitkumar Bal, 54, for the murder.

Both were residents of Rail Rahat Colony at Katargam and came from Cuttack, Odisha, to work in a powerloom factory on Ved Road in Surat , according to the police.

The police said the murder, which took place on November 1, followed a dispute over Rs 30,000 that Sanjit had borrowed from Suchitkumar.

They had quarrelled over the amount before that as well, Katargam police Inspector L R Gohil said.

Gohil said, “On Sunday evening, Suchit called Sanjit to his house for some work, and later hit him on the head with a blunt object, killing him in the house in the presence of his wife.

“Late at…