The shocking incident occurred at Veerapur in Sangareddy district on Sunday night.
Bathukamma, the nine-day long floral festival, began across Telangana on Sunday. During the festival, women arrange flowers and sing and dance around it.
Swapna was playing Bathukamma along with other women of the village when her husband Y. Yellareddy attacked her with an iron rod. The woman suffered head injuries and died on the spot.
Yellareddy escaped after the attack. Police registered a case and launched a hunt for the accused.
Yellareddy was furious over Swapna's extra-marital relations with another man Ramesh.
According to police, Yellareddy had married Swapna's elder sister Manga a few years ago. However, a month after the marriage Manga committed suicide by setting herself ablaze. Subsequently, Gopal Reddy and Yellamma married off their second daughter Swapna to Yellareddy.
The couple led a happy married life for six years. They have a daughter and a son. However, later, they developed differences and used to quarrel frequently.
Swapna had also developed extramarital relations with another man from the village. As she continued the relationship despite Yellareddy's warnings, he hatched a plan to eliminate her.
On Sunday, when she was playing Bathukamma with other women of the village, he executed the murder plot.