Pawan Kumar Sahu, owner of a crusher, was kidnapped by a gang for ransom while he was returning to his home on the night of December 13, police said.
Following his abduction, the accused called up Sahu's family using his phone and demanded Rs 10 lakh for his release, said Superintendent of Police, Inderjeet Mahatha.
Police swung into action after an FIR under section 364(A) was registered at Chowka police station by Sahu's brother Ramdeo Sahu yesterday.
Police also recovered Sahu's mobile phone from Poshu's possession and a motorcycle, Mahatha added.
Munda was also an accused in a murder case in 2013 under Chowka police station limits.
