Melbourne maths teacher Sunil Sharma disappeared on May 22 after he travelled to Amritsar in India's northwestern Punjab province.
Local police said on Sunday morning Australian time investigations into the disappearance revealed Mr Sharma was allegedly murdered over a property he owned.
Four accused have been arrested as part of the investigation, Amritsar Local Police said.
Indian police allege Mr Sharma's brother Satish spiked his drink with sleeping pills before dealing fatal blows to his head with a baseball bat.
His body was allegedly dumped in a canal, with police continuing to search for his remains.
Mr Sharma's daughter Surbhi said police statements alleged her uncle Satish and his associates had created a fake power of attorney and sold both her dad's and her aunty's properties.
Ms Sharma said her father was a good man and should not be associated with the actions of his brother.
"What happened to him was done to him. He was a victim of an unthinkable act of betrayal by someone who should have protected him," she said in a statement.
Ms Sharma remembered her father as an intelligent, strong, and funny person who was also "loving and sensitive".
"He had a heart of gold and he gave everything to the people he loved," she said.
"He was always there for us, sometimes even a little too much, but I would not change a single moment of that."
The president of the Punjabi Club of Victoria said the community was deeply saddened and shocked by the tragic alleged murder of Mr Sharma during his visit to India for personal property matters.
"No family should have to endure such a senseless and tragic loss," Param Jaswal said in a statement.
"Acts of violence have no place in any society and must be dealt with firmly under the rule of law."
He acknowledged the prompt and professional efforts of local police in investigating the case and apprehending the alleged culprits.
"Their swift action has provided some reassurance to the family and community that justice is being pursued," Mr Jaswal said.
Victoria's education department and Mr Sharma's colleagues at Diamond Valley College, where he taught for 13 years, have sent their condolences to his family, a department spokeswoman said.
"Mr Sharma was a dedicated and valued member of the Diamond Valley College community," a spokeswoman said.
"Our heartfelt sympathies and thoughts are with Mr Sharma's family, friends, colleagues and students."
The Department of Foreign Affairs is aware of the arrests made in relation to the teacher's death and is in regular contact with local authorities.
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