The trader — Pradip Prasad — was abducted from his shop in Super Market on Tuesday. His mutilated body was found in the Merima village area, around 5km from Kohima.
Prasad, who hailed from Bihar, was around 40 years old.
The abductors had demanded Rs 5 lakh from the family of the victim and later scaled it down to Rs 2 lakh.
But the abductors later informed the family members that the businessman had been killed and therefore the ransom need not be paid. The abductors also asked the family to collect the body.
Although there were no bullet marks, the police said the victim died of torture.
Police officials said they were investigating all angles. However, they did not rule out the involvement of some “terror elements” in the incident.
The Kohima Chamber of Commerce and Industries (KCCI) said it would chalk out its course of action, not ruling out closure of shops in protest against the trader’s killing.
“We are yet to decide the course of action,” a spokesman for the KCCI told The Telegraph.
The trade chamber strongly condemned the killing and asked the authorities to bring the culprits to book at the earliest.
Of late, there has been a sharp increase in extortion and collection of taxes by outfits and “terror elements” here, which had forced the capital’s business community to resort to a total closure of shops on March 31.
The closure was against rampant extortion, collection of taxes by different groups, intimidation, among others, thus causing fear and insecurity among the members of the business fraternity.
Several organisations, including taxis, buses and trucks, supported the bandh.
The KCCI warned it would take further steps if the district administration failed to pay any heed to its grievances.
Last year in Dimapur — the commercial hub of the state — over 20 non-Naga businessmen were abducted and killed by elements having alleged links with militant outfits operating in Nagaland. Over 200 affluent non-Naga traders had fled the state for fear of their lives.