Punjab singer-politician Shubhdeep Singh Sidhu, aka Sidhu Moose Wala, was shot dead on Sunday evening.
A day after his security was scaled down - a move that has brought the Bhagwant Singh Mann government under huge criticism from the opposition.
The murder of the 28-year-old Congress leader - blamed on inter-gang rivalry - has shocked the state, triggering a fresh political row.
Canada-based Goldy Brar and jailed gangster Lawrence Bishnoi have been named by the state police in the killing.
Moosewala - who had very recently joined the Congress - had drawn criticism for promoting gun culture in his songs.
On Sunday evening, soon after leaving his home, Moose Wala was driving his SUV when two cars came from the front and chaos unfolded.
A CCTV video has emerged that shows the two cars trailing his black SUV.
A huge police force remains deployed outside the Mansa district home of the singer, killed just weeks before he was to turn 29.
“It seems to be an inter-gang rivalry case...Lawrence Bishnoi gang is involved in this. Lucky, member of the gang has taken responsibility from Canada,” Punjab DGP VK Bhawra said on Sunday evening at a press briefing.