The Mumbai police recovered cutters and a small knife from the house of the woman whose decomposed body was found in a plastic bag on Wednesday.
The police said they suspect that the woman was murdered in December.
"The woman's arms and legs were chopped off after she was killed. This was done using cutters and a small knife which have been recovered from the house," an officer said.
Rimple Jain, daughter of the deceased, who was identified as Veena Prakash Jain, has been taken into custody.
The sleuths said they haven't yet told her that she has been arrested in connection with the case, and she is still being questioned.
The investigators suspect that she might have committed the murder.
Earlier, on Tuesday, the police recovered the rotting body in a plastic bag kept in the cupboard in the Lalbhaug area.
The police took custody of the body and sent it for post-mortem.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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