Of the total 165 accused lodged in jail, 90 have sought bail and the court will decide on their pleas on January 16.
The incident took place at Mayurba village under the Sonbarsha PS limits where the alleged extortionists had arrived on a bike seeking extortion from a home guard.
The Superintendent of Police also said the BLO had suddenly fallen ill and he died while being rushed to a hospital on Friday.
Those arrested included a 70-year-old man, an M Tech degree holder and a professional employed as a manager in a well-known company, he said.
AIMIM chief Asaduddin Owaisi condemned the lynching of the Muslim man and questioned the Nitish Kumar government over safety of minorities in the state.
Advocates Amrut Adhikari and Atul Patil, who appeared for the applicants, submitted in the court that their clients had no role in the incident and the police arrested them on mere suspicion.
Earlier this month, the court had granted bail to four persons, including a man and his two sons, in the case.
The Maharashtra government had earlier informed the apex court that all guilty police officials have been punished or suspended from services.
The Maharashtra Criminal Investigation Department (CID) is at present conducting an investigation into the case.
District Judge P P Jadhav ordered that the four accused by released on a bail of Rs 15,000 each.
Shri Narayan Singh, 45, was killed on Saturday evening while campaigning at the Hathsar village in the Puyanhiya police station area.
On April 16, two seers and their driver, who were heading towards Surat from Mumbai in a car, were beaten to death by a mob in Palghar's Gadchinchlale village on suspicion that they were child-lifters
With this, 186 people have so far been arrested and 11 juveniles detained in connection with the incident.
Advocate Amrut Adhikari, who appeared on behalf of the applicants, argued that the FIR does not mention their names as assailants and hence their involvement in the crime appears to be suspicious.
Dr. Deben Dutta, a senior medical officer of the Teok Tea Estate hospital in Jorhat district, was lynched by a mob on August 31 last year for his alleged delay in treating a worker.