A senior BJP activist, who was also party State RTI Cell co-convener, was stabbed to death by a person in Wyra town on Saturday. The deceased was identified as N Rama Rao, 45, of Wyra.
The incident triggered tension in the town as local BJP leaders alleged that the murder was politically motivated.
However, the Wyra police ruled out any political rivalry behind the murder.
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The preliminary inquiry suggested that personal enmity owing to financial disputes between the deceased and the accused was the motive behind the killing, police said.
Sources said M Rajesh, 35, of Wyra allegedly barged into the house of Rama Rao and stabbed him with a knife repeatedly leaving the latter critically injured in a pool of blood.
As the frightened mother of Rama Rao raised an alarm, the accused fled from the spot.
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A profusely bleeding Rama Rao was rushed to the district headquarters hospital in an ambulance. But he succumbed to the stab wounds soon after reaching the hospital, sources said.
BJP Kisan Morcha State president K Sridhar Reddy and BJP district president G Satyanarayana paid their last respects to the slain BJP activist.
In a statement, Mr Sridhar Reddy alleged that Rama Rao was targeted by vested interests for trying to expose scams by the RTI Act.
"There is a conspiracy behind his murder," he charged, demanding that a detailed investigation be ordered into the incident to unravel the facts.