The woman, identified as 57-year-old Uma Devi, had gone on her daily walk to the temple at 6.30 pm on April 18, but never returned, following which her family approached the police and put out appeals on social media.
The accused has been identified as 42-year-old Anumula Murali Krishna and police said that he allegedly killed the woman in a bid to steal and sell her jewellery.
A jeweller, Joshi Nanda Kishore, who bought the gold from the priest was also identified and arrested.
Later, he tried to dispose of the body by taking it to an isolated place in a trolley but could succeed as the locals and police officials were searching for the woman,” the police said in a press note.
Investigation officials further said that as the body began emitting a bad odour after two days, the accused rolled the drum back to the temple and dumped it in some bushes behind it.
Police suspected that the woman’s body may have been dumped at the spot only on Wednesday as officials who had combed the area earlier did not come across it.