Police said the deceased Senthilkumar of Ambattur against whom several cases were registered came out from the jail only a few days back.
A gang know to Senthil Kumar took him to an isolated place at the industrial estate on the pretext of celebrating New Year.
During the party, a quarrel erupted between Senthil Kumar and the gang members.
They slit his neck, killing him instantly and fled the spot.
Passerby, who noticed the body, informed the police.
The body was send for post-mortem, police added.