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They said that Muniappan (28) and Nivetha (19) natives of Karnataka were staying in Mettukaddai, 10 km from Erode.
They had been married eight months ago.
Police said the man suspected his wife was being unfaithful and had frequent fights with her over this.
On Monday night after one such argument, the man stabbed her on the neck and later severed the head from the body.
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They caught hold of him and informed the police. A case of murder was registered against him and he is questioned, police said.