Sylhet municipal workers were seen dumping market waste into the river, a resident says
They held the husband of the 20-year-old housewife, Rani, on suspicion that he might have burned her to death.
Rani had been living in the G-Block of the camp, home to tens of thousands of stranded Pakistanis, popularly referred to as Biharis.
Mohammadpur police said the body was recovered on Wednesday afternoon.
Quoting locals, police Inspector Jan-e-Alam said Shaheb Ali had poured kerosene on his wife and set her on fire following a family feud.
Ali, however, claimed that Rani had burned herself to death.
Police officer Alam said the incident was being investigated.