Thousands of people on Saturday gathered at the home of noted Dalit litterateur Krishna Kirwale, who was murdered by a carpenter over a petty financial matter.

Police teams have swung into action to trace out the 30-year old accused, Pritam G Patil, who had made some furniture at the Kirwale residence.

Police said the Dalit scholar, researcher, writer and activist was murdered over dispute of Rs.25,000 at his Bindu Chowk residence in Rajendra Nagar area of this erstwhile princely city on Friday evening.

Investigators said Patil had a dispute over the outstanding amount that allegedly triggered the attack and the murder.

Kirwale's body was found in a pool of blood near his residence.

He is survived by his wife Kalpana and daughter Anagha, a PhD student at the Fergusson College in Pune.

His last rites are scheduled for later on Saturday at the Panchganga Ghat crematorium, his close associate Alok Jatratkar said.

In view of a shutdown call issued by some organisations, the police have deployed tight security in the city and urged people to exercise restraint and remain calm.