Madakam Yerraiah had worked as an assistant commander in Kalimela, Motu and Pappuluru dalams in neighbouring Odisha.
He was allegedly involved in seven violent incidents including the attack on Koraput district police office and also in Balimela boat capsize incident in which 38 police personnel mostly of Grey hounds were killed in 2008, said East Godavari SP Vishal Gunni.
The police officer said Yerraiah had been dormant since 2012 and had stayed in a hideout near his native village Togurukota in Malkangiri district of Odisha state.
Meanwhile, the police arrested three naxals, including a dalam member, during checking of vehicles at Yetapaka police station in East Godavari agency last night.
They are identified as Madivi Rama (20), Molumuri Srinivasarao (38), and Payam Jogarao (32).
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