Police said the incident occurred in the Citizen Colony of the city, and identified the deceased as Prof. Dr Dharam Dev Rathi.
They said Rathi had retired from his job a couple of months ago and was now running a private clinic in the Saddar area.
Police quoted the cook as saying that the deceased had returned home with his driver, Hanif Laghari, at 11:00pm and the two had a heated argument afterwards.
The cook added that later that night, he saw the dermatologist lying in a pool of blood with his throat slit. The driver is said to have fled in the vehicle that he drove while working at the house.
Police added that after they were informed about the incident, they moved the body to Liaquat University Hospital.
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The doctors found no marks of violence on him, while his throat was slit with a sharp object, probably a knife.
A day later, police managed to arrest Laghari from his hometown of Khairpur using his cellphone record.
Talking to media persons on Wednesday evening, SSP Hyderabad Amjad Ali Sheikh said that police have launched a thorough inquiry to unveil the motive behind the murder.
The law enforcement agency further said that the deceased was a renowned dermatologist of the country and had also served as professor in different institutes. His family has been residing in the US for the past eight years.
It is not known yet as to what led to the suspected retaliation of the staff, causing the medic's murder.
Meanwhile, Sindh Hindu Panchayat deplored the brutal murder, demanding a thorough inquiry into the murder of the renowned medic. They urged the police to carryout a multidimensional investigation into the incident.