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Avinash died during treatment on Thursday, they said, adding that efforts are being made to nab the accused, Vicky.
The incident took place on Wednesday night in South Delhi’s Ambedkar Nagar area, they said.
According to police, Avinash, Vicky and some other people were in Dakshinpuri area when the two had an altercation over money. Vicky then took out a firearm and shot Avinash in the head.
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Preliminary investigation revealed that Avinash, who is money-lender, had a financial dispute with Vicky who also lived in the same locality as him, the officer said.
Deputy Commissioner of Police (South) Benita Mary Jaiker said, “We have registered a case under section 307 (attempt to murder) and section 302 (murder) of the Indian Penal Code has been added along with other relevant sections of the Arms Act. An investigation is underway to nab the culprits.