Pahan heads the Jharkhand Regional Committee of Maoists and is known to operate in the Ranchi district where the Induwar was kidnapped last week.
The police officer was murdered, and then beheaded Taliban-style.
Pahan is wanted in several cases, including looting a bank van carrying over Rs 1 crore last year.
The photograph of his murderer has been distributed as the shocking news broke that Inspector Induwar had not been paid for six months before he died, because of bureaucratic delays. He was meeting a source in a market when he was kidnapped.
Induwar's death has caused shockwaves in both Jharkhand and the rest of the country. His execution has forced many to demand that the government treat Naxals like terrorists.
A poster found next to Induwar's body said his killing was in retaliation for "police oppression."