Local witnesses told the NDTV broadcaster that the suspect - identified by police as Suresh Mudiraju - entered Reddy's office with passbooks related to his property on Monday afternoon. Some half an hour later, Reddy rushed out of the office engulfed in flames. Her fellow-employees tried to extinguish her by wrapping her in a blanket.
"Suresh Mudiraju did not act on impulse. He came to the victim's office with a plan", local police said, adding that "the driver, Gurunatham, died at a hospital while undergoing treatment", according to the NDTV.
The NDTV reported that the suspect had grievances related to the local revenue department, which apparently refused to fix certain errors in his documents, related to an ongoing court case involving his property. The suspect reportedly made repeated trips to the revenue office before setting it on fire.
Local authorities have launched an investigation into the incident.
The brutal attack on the official has sparked protests in the area. Locals have reportedly blocked nearby roads demanding justice, better security and rapid probe of the incident.