In short:

Indian police allege missing Melbourne high school maths teacher Sunil Sharma was murdered by his brother and dumped in a canal.

The Australian citizen had gone back to his country of birth to attend to property matters but went missing last month.

His grieving daughter Surbhi Sharma has paid tribute to her father, saying she counts herself lucky to have had a loving father like him.

Melbourne maths teacher Sunil Sharma, who went missing in India last month, was allegedly murdered by his brother and dumped in a canal.

Sunil Sharma, 66, was preparing for retirement and had been in the city of Amritsar in Punjab province in the country’s north-west, readying an investment property for sale when he disappeared on May 22.

On Saturday local time, Amritsar police gave a press conference after arresting Sunil Sharma’s brother Satish Sharma. They allege he gave his brother a drink spiked with sleeping pills and then murdered him with blows to the head with a baseball bat.

Sunil Sharma, in an undated photograph.

Indian authorities say Melbourne man Sunil Sharma was drugged by relatives and then killed with a baseball bat.

Senior Superintendent of Police Kanwalpreet Singh alleged Satish Sharma’s wife and son assisted in removing a blood-stained mattress and the baseball bat.

He said the trio dumped the body in a canal and a police search was underway to recover the body.

Sunil Sharma’s daughter Surbhi Sharma told the ABC on Saturday night authorities had informed her that her uncle had been arrested by police and had confessed to murdering his brother and dumping his body in a river.

Police had been searching for Mr Sharma’s brother, who was seen at the property around the time his brother went missing.

Relatives of missing Melbourne man Sunil Sharma who are accused in relation to his disappearance and death

Murder accused Satish Sharma (far right in red face covering) pictured with Indian police along with his wife and son (centre) during their arrest. (Supplied)

She said she had been told a major search was underway to recover her father’s body.

In a statement, Ms Sharma paid tribute to her “intelligent, strong and funny” father, who she described as “loving and sensitive” with a “good heart”.

“My dad was always there for us and sometimes even a little too much,” she said.

“But I count myself so lucky to have had a father like him who taught me everything I know about life today.”

Sunil, Surbhi and Saransh Sharma smile, standing in a white kitchen.

Sunil with his daughter and son, Surbhi and Saransh Sharma. (Supplied)

Ms Sharma also said she had been touched by tributes from the Diamond Valley College community, where her father had been a teacher.

“He would’ve loved to see everyone recognise him and it warms my heart to read and know he gave the gift of education to hundreds of students over the course of his life,” she said.

The ABC understands Australia’s Department of Foreign Affairs and Trade is aware of the arrests of Sunil Sharma’s relatives and is in regular contact with Indian authorities.

Sunil Sharma pictured with his family

Sunil Sharma, pictured with family, was a teacher at Diamond Valley College in Melbourne’s north-east. (Supplied)

The Department of Education issued a statement expressing its condolences on behalf of Diamond Valley College, where Mr Sharma worked for 13 years.

“Mr Sharma was a dedicated and valued member of the Diamond Valley College community,” a spokesperson said.

“Our heartfelt sympathies and thoughts are with Mr Sharma’s family, friends, colleagues and students.”