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Unable to repay a loan of Rs. 40 lakh, a man murdered his business partner in Gurgaon and later killed his wife after she backtracked on her promise to commit suicide together, police said Friday.

The accused, Harnek Singh, had taken a loan from Jaskaran Singh but despite repeated reminders, refused to pay him back, they said.

Fed up, Jaskaran landed at his business partner's home in DLF Phase 2 on October 14. However, Harnek, his wife Gurmehar Kaur and their friend tied him up and killed him, they added.

According to Subhash Bokan, the public relations officer of Gurgaon Police, the accused along with his wife and friend then chopped Jaskaran's body into 24 to 25 pieces, stuffed it into two plastic bags and left for their hometown of Ludhiana.

"The accused kept throwing the body pieces at isolated places on the road en route Ludhiana," Bokan said.

After returning to Gurgaon, Harnek Singh realised that they would be caught eventually and convinced his wife to commit suicide together.

When she refused, Harnek Singh allegedly slit her throat on the night of October 22 and also inflicted injuries on himself to mislead the police.

He then told the police that his house was ransacked and robbers had killed Gurmehar Kaur, Bokan said.

When asked why the robbers only injured him and murdered his wife, he failed to come up with a satisfactory response, he added.

"When he (Harnek) was interrogated at length, he confessed to the murders," Bokan said.

After being produced before a local court, Harnek Singh was sent to police custody for two days, police said.