The arrested Maoist commander, Soma Munda, carried a reward of Rs 50,000 on his head. The police have seized Rs 48,000 from his possession collected as levy.
According to the police, the Maoist camp in Madhuban in Giridih was destroyed in a joint operation of the police and Central Reserve Police Force (CRPF).
The police had received information about the presence of Maoist guerrillas of Bengal, Odisha, Jharkhand at the camp.
Police sources said a group of Maoists was holding a meeting, but they escaped when the camp was raided.
The police have seized Maoist literature and other incriminating documents.
Maoist guerrillas are active in 18 of the 24 districts of the state.