Several weapons, including a self-loading rifle, were recovered during the search operation after the gunfight, police said.
The encounter between security forces and Maoists broke out near the Sitachuan area between Mohammadganj and Hydernagar police station limits late on Monday, police said.
“The body of a CPI (Maoist) has been recovered, following an intense gunfight between the security forces and red rebels in Palamu. The identification process is on,” Palamu DIG YS Ramesh told PTI.
However, another police official said it was the body of Tulsi Bhuniyan, a top Maoist commander.
Another Maoist Nitesh Yadav, who is carrying a bounty of Rs 15 lakh on his head, received a bullet injury, the official said. However, Ramesh said it is yet to be verified. The security forces have launched a massive anti-Naxal operation here and three dreaded Maoists were neutralised in the last few days, including one on Monday.
In the adjoining Latehar district, Manish Yadav, a member of the banned CPI (Maoist), who was carrying a bounty of Rs 5 lakh on his head, was killed in a gunfight with security forces on Monday, while another red rebel was arrested.
Arrested Maoist Kundan Singh Kharwar, a zonal commander of the organisation, was carrying a bounty of Rs 10 lakh on his head and two X-95 automatic rifles and ammunition were recovered from his possession.
Manish and Kundan had been active in CPI (Maoist) for the past 12 years, and while Manish was wanted in 40 cases, Kundan in 27.
Both of them were involved in several incidents, including an encounter on January 7, 2013 at Amwatikar Tola under the Barwadih Police Station limits, in which 10 police personnel were killed and 15 injured.
Earlier on May 24, Pappu Lohra, the chief of the proscribed Jharkhand Jan Mukti Parishad (JJMP), carrying a reward of Rs 10 lakh and his associate Prabhat Ganjhu, the sub-zonal commander of the organisation, were killed during an operation.
Ganjhu was carrying a bounty of Rs 5 lakh on his head.
Lohra was wanted in 98 cases, including murder, extortion, and arson, in several districts such as Lohardaga, Gumla, Chatra, Palamu, and Latehar, while Ganjhu was wanted in 15.
Both were allegedly involved in the killing of Jharkhand Jaguar deputy commandant Rajesh Kumar during an operation in September 2021.