Peeved over the alleged non-payment of his dues worth over Rs 2.50 lakh, a construction contractor set a builder's luxury Mercedes car in Noida on fire, officials said on Wednesday.

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Contractor Ranveer (40) has been arrested. The incident had taken place outside the builder's home on Monday and the episode was caught on a CCTV camera, Deputy Commissioner of Police Harish Chander said.

A footage of the episode showed contactor Ranveer on a road outside builder Ayush Chauhan's house in the Sadarpur area under the Sector 39 police station limits during the daylight incident two days ago.

Ranveer had reached there on a motorcycle and wearing a helmet.

The Mercedes car of the builder was parked on the road and the contractor, without removing his helmet, went near it, poured some flammable liquid on it and then set it on fire, the footage showed.

"The contractor was arrested on Wednesday. He claimed a financial dispute with the builder because of which the contractor said he took this step," DCP Chander said.

Chauhan had on Tuesday filed a complaint against Ranveer at the local police station, leading to his arrest on Wednesday. He was booked under the Indian Penal Code Section 435 (mischief by fire with intent to cause damage). Officials said the builder had been hiring the contractor for work since 2018-2019.

The builder allegedly owed over Rs 2.50 lakh to the contractor for some tile work and this had led to arguments between them recently, the officials said.

When asked about the contractor's claims, the DCP told PTI, "Whether any payment was due or the money has been paid to the contractor is part of inquiry. We have not received any complaint from the contractor but if we get it, we will probe the matter."