Police said dacoit Mukti Ahirwar, who carried rewards of Rs 10,000 and Rs 3,000 over his head announced by Datia and Gwalior police respectively, abducted people and handed them over to dacoit chieftain Nandu Kadera.
Mukti had abducted Ratan Singh Rawat from Badoni area last evening.
Police cordoned off the dacoit in the forests of Ghaghusi early today. In the ensuing encounter, Mukti was neutralised and Rawat was freed.
Meanwhile, police said two villagers, Puran Baghel and Lakhan Baghel, were missing from Madanpura village at Sewda tahsil in this district. Some people claimed the duo were abducted.
UNI MKS-PS 1832