BHOJPUR: Police said on Wednesday they have arrested three persons in connection with the cold-blooded murder of Binod Yadav, operator of Oxford Hostel in Biratnagar of Morang district.

Yadav's body, beheaded and legs severed, was found in a room of Omkar Shrestha's house in Biratnagar-13 on Tuesday morning, sounding alarm bells in the locality.

The three suspects -- two of them aged 17 and the other 22 -- were arrested from near Jogbani along the Nepal-India border yesterday night. They were paraded at the Morang District Police Office in Biratnagar today.

The suspects stayed at the house as tenants, and they reportedly had partied together with Binod Yadav on the night of Monday.

The deceased was permanent resident of Aurabani-5, Sunsari district.

According to police, the severed body was kept in a sack.

Two of the suspects are teenagers, while the third one is 22, police said. They are identified as Jitendra Shah (17) of Saptari, and Krishna Kumar Yadav (17) and Rakesh Kumar Yadav (22) of Siraha. Police said fourth suspect is at large.

Police had found a sharp weapon, a pistol, eight mobile sets, SIM cards and blood-stained clothes from from the site.

Police claimed that the trio have confessed to killing Yadav.

The reason behind the cold-blooded murder, however, was not known.