Three Maoists were killed when a gunfight started during a search operation by the security forces Bihar's Gaya district around midnight on Saturday.
Among those killed in the exchange of fire was Maoist zonal commander Alok Yadav, who carried a reward of Rs10 lakh.
Troops of the 205 CoBRA (Commando Battalion for Resolute Action) and the Bihar Police, who carried out the operation, also recovered one AK-47 rifle and one INSAS rifle from the encounter site.
The encounter took place in the Barachatti forest area of Bihar's Gaya district - about 100 kms from state capital Patna.
According to an official statement, security forces started the search operation around 12.20am after reports that Yadav had killed two people in the area.
"There was exchange of fire between 205 CoBRA commandos and maoists at Mahuri village area today morning when a cultural programme was going on near a temple," the official release read.
The search operation is underway and further information is awaited.
The CoBRA or the Commando Battalion for Resolute Action is a special jungle warfare unit of the Central Reserve Police Force that is deployed in the state for anti-Maoist operations.