According to police inspector R D Shinde of Shanti Nagar police station, the crime took place in Kidwaee Nagar in Bhiwandi where victim Abuzar Shakeel Ansari was allegedly murdered by accused Rehan Mohammad Rizwan Ansari on April 27-28 after a dispute over employing workmen in their unit.
Shakeel's decomposed body was recovered late on Monday evening hidden in a corner in the factory, which was locked to conceal the evidence, he said.
It was only when foul smell began to emanate from the premises that the murder came to light, police said.
Since the body had rotten, it could not be established as to how the victim was killed, they said.
The body has been sent to the local hospital for postmortem. Also, based on the complaint by Gubran Ansari, the brother of the victim, an offence has registered with the Shanti Nagar police station under section 302 and 201 of the IPC against Rehan, who is absconding.
Police has launched a manhunt to nab him.